1.6 4 The financial statements for Castile Products, Incorporated, are given below. Castile Products, Incorporated Balance Sheet December 31 points Assets Current assets: Cash $ 20,000 Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Bonds payable, 101 Total liabilities Stockholders' equitys Common stock, $10 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 250,000 360,000 9,000 639,000 840,000 $1,479,000 $210,000 380,000 590,000 $100,000 709,000 889,000 $1,479,000 Castile Products, Incorporated Income Statement Gross margin Gelling and administrative expenses For the Year Ended December 311 Sales $2,210,000 Cost of goods sold 1,230,000 900,000 600,000 380,000 38,000 342,000 102,600 $239,400 Net operating incone Interest expense Net income before taxes Income taxes (30%) Net income Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $280,000. All sales were on account. Assets at the beginning of the year totaled $1,050,000, and the stockholders' equity totaled $665.000. Required: Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.e.. 0.1234 should be entered as 12.34).) 1. Gross margin percentage.. 2. Net profit margin percentage. 3. Return on total assets. 4. Return on equity. 5. Was financial leverage positive or negative for the year