2 The financial statements for Castile Products, Incorporated are given below 1.42 points Assets Castile Products, Incorporated Balance Sheet December 1 Current assets) eBook Ask Print References Cash 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, 11% Total liabilities Stockholders' equity Comson stock, $5 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Sales Castile Products, Incorporated Incove Statevent For the Yead Ended December 31 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 20,000 190,000 390,000 12,000 612,000 860,000 $1,492,000 $ 230,000 300,000 530,000 $110,000 652,000 962,000 $ 1,492,000 $ 2,160,000 1,180,000 980,000 610,000 370,000 33,000 337,000 101,100 $ 235,900 A Account balances at the beginning of the year were accounts receivable, $160,000, and inventory, $350,000 All sales were on account. Assets at the beginning of the year totaled $1,050,000, and the stockholders' equity totaled $625,000 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? 1. Gross margin percentage 2. Net profit margin percentage 3. Return on total assets 4 Return on equity 5. Financial Leverage 45.37 % 10.88% % 24.52%