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

Castile Products, Incorporated

Balance Sheet

December $31$

Assets

Current assets:

Cash $ $20,000$

Accounts receivable, net $250,000$

Merchandise inventory $350,000$

Prepaid expenses $9,000$

Total current assets $629,000$

Property and equipment, net $880,000$

Total assets $ $1,509,000$

Liabilities and Stockholders' Equity

Liabilities:

Current liabilities $ $220,000$

Bonds payable, $10\%390,000$

Total liabilities $610,000$

Stockholders$$ equity:

Common stock, $$5$ per value $ $120,000$

Retained earnings $779,000$

Total stockholders$$ equity $899,000$

Total liabilities and stockholders$$ equity $ $1,509,000$

Castile Products, Incorporated

Income Statement

For the Year Ended December $31$

Sales $ $2,110,000$

Cost of goods sold $1,260,000$

Gross margin $850,000$

Selling and administrative expenses $610,000$

Net operating income $240,000$

Interest expense $39,000$

Net income before taxes $201,000$

Income taxes $(30\%)60,300$

Net income $ $140,700$

Account balances at the beginning of the year were: accounts receivable, $$240,000$; and inventory, $$290,000.$ All sales were on account. Assets at the beginning of the year totaled $$1,040,000,$ and the stockholders$$ equity totaled $$695,000.$

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?