Chapter 15 HW 0 The financial statements for Castile Products, Inc., are given below: 0.83 points $ 6,500 net 35. ea 70,000 eBook 3,500 Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Dati Property and equipment, net a t Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% Total liabilities Stockholdersequity: Common stock, $5 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 10 paa 185,000 $300,000 Print References $50,000 80,000 130,000 30,000 140,000 170,000 $300,000 Castile Products, Inc. Income Statement 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 $420,000 292,500 127,500 89,500 38,000 8,000 30,000 9,000 $ 21,000 Account balances at the beginning of the year were accounts receivable, $25,000, and Inventory, $60,000. All sales were on account. Assets at the beginning of the year totaled $280,000, and the stockholders' equity totaled $161,600 Required: Compute the following: 1. Gross margin percentage. (Round your percentage answer to 2 decimal places (.e., 0.1234 should be entered as 12.34).) 2. Net profit margin percentage. (Round your answer to the nearest whole percentage place (I.e., 0.1234 should be entered as 12%).) 3. Return on total assets. (Round your percentage answer to 1 decimal place (.e., 0.1234 should be entered as 12.3).) 4. Return on equity. (Round your percentage answer to 1 decimal place (.e., 0.1234 should be entered as 12.3).) 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 equily 5. Financial Leverage