The Operating activities section of Filler-Up, Inc.s Statement of Cash Flows for the year ended December 31, 20x2 and 20x1, includes the following items:

(in $ millions)	Fye 20x2	Fye 20x1
Cash flows from operating activities:
Net earnings	$359.7	$314.6
Depreciation	51.2	50.2
Change in accounts receivable; (increase) decrease	(42.0)	(43.4)
Change in accounts payable; increase (decrease)	8.4	16.6
Net cash provided by operating activities	$392.6	$329.3

Required

Answer the following questions:

1. Why does the company add back depreciation to compute net cash provided by operating activities? Is depreciation a source of cash?
2. The company reports cash flows associated with accounts receivable. In 20x1, this item is a cash outflow of $43.4 million and in 20x2 this item is a cash outflow of $42.0 million. Explain why this item is on the statement.
3. Did Filler-Up Inc.s accounts payable increase or decrease during 20x2? How do you know?