The statement of cash flows for Beast Incorporated for the year ended December 31, 2013, includes the following items (excerpts only).

(in $ millions)	2013	2012
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	$377.3	$338.0

1. Explain why the company's net earnings are not the same as its net cash provided by operating activities.

2. Why does Beast add back depreciation to compute net cash provided by operating activities? Is depreciation a source of cash?