he financial statements for Castile Products, Incorporated, are given below:

Castile Products, Incorporated

Balance Sheet

December $31$

Assets

Current assets:

Cash $ $19,000$

Accounts receivable, net $220,000$

Merchandise inventory $340,000$

Prepaid expenses $8,000$

Total current assets $587,000$

Property and equipment, net $820,000$

Total assets $ $1,407,000$

Liabilities and Stockholders' Equity

Liabilities:

Current liabilities $ $280,000$

Bonds payable, $11\%350,000$

Total liabilities $630,000$

Stockholders$$ equity:

Common stock, $$10$ per value $ $120,000$

Retained earnings $657,000$

Total stockholders$$ equity $777,000$

Total liabilities and stockholders$$ equity $ $1,407,000$

Castile Products, Incorporated

Income Statement

For the Year Ended December $31$

Sales $ $2,160,000$

Cost of goods sold $1,250,000$

Gross margin $910,000$

Selling and administrative expenses $600,000$

Net operating income $310,000$

Interest expense $38,500$

Net income before taxes $271,500$

Income taxes $(30\%)81,450$

Net income $ $190,050$

Account balances at the beginning of the year were: accounts receivable, $$190,000$; and inventory, $$270,000.$ 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:

Note: For Requirements $1$ to $4,$ enter your percentage answers rounded to $2$ decimal places $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34).$

Gross margin percentage.

Net profit margin percentage.

Return on total assets.

Return on equity.

Was financial leverage positive or negative for the year?