To demonstrate, we can calculate a company's total expenses based on its total revenue from the income statement and its owners' equity from the balance sheet. Image source: Getty Images.

Interest expense ... company's income statement, and represents the interest accrued during a certain time period, not necessarily the interest the company actually paid. The simplest way to ...

and you paid $8,000 in taxes and interest expenses. Subtracting these items shows net income of $7,000 for the month. Using this information, we can calculate your net profit margin as ...