EXERCISE 15-8 Selected Financial Ratios [L015-2, LO15-3, L015-4) The financial statements for Castile Products, Inc, are given below: Castle Products, Inc. Balance Sheet December 31 Assets Current assets Cash. Accounts recelvable, net 35,000 70,000 3,500 115,000 . Prepaild expenses. Total current assets .. Total assets $300,000 Liabilities and Stockholders' Equity Liabilities Current liablities ...50,000 130,000 Stockholders' equity: $30,000 140,000 Total stockholders' equity170,000 300,000 Common stock, $5 per value Retained earnings Total liabilities and equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold.... . $420,000 Selling and administrative expenses ...89.500 ....38,000 Net income before taxes Income taxes (30%) 8,000 30,000 9,000 $ 21000 Account balances at the beginning of the year were: accounts receivable, $25,000; and inventory, $60,000. All sales were on account. EXERCISE 15-9 Financial Ratios for Assessing Profitability and Managing Debt [L015-4, LO15-5] Refer to the financial statements for Castile Products, Inc., in Exercise 15-8. Assets at the beginning of the year totaled $280,000, and the stockholders' equity totaled $161,600. Required: Compute the following 9. Gross margin percentage. 10. Net profit margin percentage. 11. Return on total assets 12. Return on equity 13. Was financial leverage positive or negative for the year? Explair