Assets Castile Products, Incorporated Balance Sheet December 31 Current assets: 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: Common stock, $5 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Castile Products, Incorporated Income Statement $ 22,000 160,000 350,000 12,000 544,000 840,000 $ 1,384,000 $ 300,000 340,000 640,000 $ 180,000 564,000 744,000 $ 1,384,000 For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 2,180,000 1,230,000 950,000 640,000 310,000 37,400 272,600 81,780 $ 190,820 Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory, $340,000. All sales were on account. Assets at the beginning of the year totaled $1,000,000, and the stockholders' equity totaled $715,000. Sales Castile Products, Incorporated Income Statement For the Year 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 $ 2,180,000 1,230,000 950,000 640,000 310,000 37,400 272,600 81,780 $ 190,820 Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory, $340,000. All sales were on account. Assets at the beginning of the year totaled $1,000,000, and the stockholders' equity totaled $715,000. 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 % % di di di di % %