CH.13 #3

The financial statements for Castile Products. Inc., are given below. Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $330,000. All sales were on account. Assets at the beginning of the year totaled $1, 030,000, and the stockholders' equity totaled $705,000. Required: Compute the following: Gross margin percentage. Net profit margin percentage. Net profit margin percentage % Return on total assets. Return on total assets. % Return on equity. Return on equity % Was financial leverage positive or negative for the year? Positive Negative