Just as business owners calculate their business cash flow ... you may encounter cash shortages, struggle to pay bills or employees, and even risk the survival of your business.

First, we'll calculate the company's net income based on the changes in owners' equity above. Adding ending owners' equity, cash dividends paid, and treasury stock purchased, we get $1,350,000.

Forbes contributors publish independent expert analyses and insights. Melissa Houston covers financial issues that affect women in business.