Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 23,000 190,000 400,000 7,000 Total current assets Property and equipment, net Total assets 620,000 870,000 $1,490,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 9% $ 290,000 340,000 630,000 Total liabilities Stockholders' equity Common stock, $5 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 120,000 740,000 860,000 $1,490,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,120,000 Cost of goods sold 1,170,000 Gross margin 950,000 Selling and administrative expenses 560,000 Net operating income 390,000 Interest expense 30,600 Net income before taxes Income taxes (30%) 359,400 107,820 Net income $ 251,580 Account balances at the beginning of the year were: accounts receivable, $200,000; 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 $665,000. Required: Compute the following: 1. Gross margin percentage. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Gross margin percentage % 2. Net profit margin percentage. (Round your answer to the nearest whole percentage place (i.e., 0.1234 should be entered as 12%).) Net profit margin percentage % 3. Return 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 % 4. Return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Return on equity % 5. Was financial leverage positive or negative for the year? Positive O Negative