The operating section of the 2008 consolidated statement of cash flows for Imation Corporation, a global technology company, is excerpted below (dollars in millions):

Required(a) Review the trends across time of depreciation. Does the company's growth strategy seem to involve investing in property, plant, and equipment? Explain.(b) Why is stock-based compensation added back to net income?(c) Has the inventory balance increased or decreased during the years shown? Explain.(d) Explain the cash flows associated with the asset impairments and the sale of a subsidiary company.

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2008 2007 2006 5 76.4 S(33.3) S(50.4) Net income (loss) Adjustments: Depreciation Amortization 28.6 29.1 25.9 23.4 0.2 18.3 9.3 9.7 7.2 (10.7) 102.5 Deferred income taxes Asset impairments Gain on sale of company Stock-based compensation 39.7 (2.1)) 9.5 5.7 10.2 2.4 11.0 1.7 (3.3)) 0.6 Pension settlement/curtailment Excess tax benefit-stock options Other 4.9 3.5 Changes in operating accounts Accounts receivable 129.0 0.2 (2.9) (61.5) (56.1) S 84.7 (33.7) 7.8 (37.6)) (49.3)) 1.5 Inventory Other assets (9.1) Accounts payable (8.7) 30.5 Other liabilities 26.8 12.8 S 87.5 S 97.5 Net cash provided by operating activities