Relationship between the net income and the flow to shareholders

Is there any relationship between the net income and the flow to shareholders?

swatisood Trainee Asked on November 12, 2014 in Small Business.
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Net income is the portion of a company’s revenues that remains after it pays all expenses. Owner’s equity is the difference between the company’s assets and liabilities. It is the shareholders share of the proceeds if you were to liquidate the company today. The relationship between net income and shareholders equity is through retained earnings, which is a balance sheet account that accumulates net income.

pooja Trainee Answered on November 15, 2014.
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