Originally Posted by gar1976

Cash flow from operations includes:

Net income (loss)
+depreciation
+loss on sale from assets/-gain on sale of assets
+(decreases in most current asset accounts)
-(increase in most current asset accounts)
+(increases in most current liability accounts)
-(decreases in most current liability accounts)

Net capital spending, while never having heard that particular term, would be assumed to be net cash spent on fixed assets (capital). What this means in this problem is you took a current asset (cash) and converted it into a non-current asset (fixed assets).

Working capital is current assets less current liabilities.

So.....Net working capital declines 73, so let's add back the purchase of assets to come to a positive $138, which should be the rest of the change in your current assets. Subtract that from your total change in operating cash flow of $938, I'd venture the answer should be b, $800.