Castile Products, Inc Balance Sheet Assets Current assets $ 18,000 210,000 400,000 9,000 Cash Accounts receivable, net Merchandise inventory Prepaid expenses 637,000 830,000 Total current assets Property and equipment, net Total assets Liabilities and Stockholders Equity $1,467,000 Liabilities: 220,000 Current liabilities Bonds payable, 11% 360,000 580,000 S 120,000 Total liabilities Stockholders' equity Common stock, $5 par value Retained earnings 767,000 887,000 1,467,000 Total stockholders' equity Total liabilities and stockholders'equity Castile Products, Inc Income Statement For the Year Ended December 31 Sales Cost of goods sold $2,270,000 1,220,000 Gross margin Selling and administrative expenses 1,050,000 600,000 Net operaing income Interest expense 450,000 39,600 Net income before taxes Income taxes (30%) Net income 410,400 123,120 287,280 Account balances at the beginning of the year were: accounts receivable, $210,000, and inventory $310,000. All sales were on account. Assets at the beginning of the year totaled $1,080,000, and the stockholders' equity totaled $675,000. Required: Compute the following Gross margin percentage. (Round your percentage answer to 2 decimal places (Le,, 0.1234 should be entered as 12.34).) 1. margin percentage 0.1234 should be entered as 12%).) Net profit margin percentage 3. Retun on total assets. (Round your percentage answer to 1 decimal place (i.e, 0.1234 should be entered as 12.3).) Return on total assets swer to 1 decimal place (le, 0.1234 should be 4. Return on equity. (Round your percentage a entered as 12.3).) Retur Was financial leverage positive or negative for the year? 5. Positive Negative