Homework 412 Sve 4 08 point ook Hei Exercise 16-9 (Algo) Financial Ratios for Assessing Profitability and Managing Debt (L016-4, L016-5) The financial statements for Castile Products, incorporated, are given below Castite products, incorporated Balance Sheet December 31 Assets Current assets: Cash $ 20,000 Accounts receivable, net 250, Merchandise inventory 350.000 Prepaid expenses 11,000 Total current assets bol, Property and equipment, net 370,000 Total assets $ 1.531,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 290,00 Bonds payable, 94 320,00 Totat Liabilities 610.000 Stockholders' equity $ 190,000 Connon stock, $10 per value 721,000 Retained earnings 9215 Total stockholders' equity $ 1.531,000 Total liabilities and stockholders' equity Heferences Total liabilities and stockholders' equity Help Save LE $ 1,531,000 4 0.8 points Castile Products, Incorporated Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross nargin Selling and administrative expenses Net operating income Interest expense Net Income before taxes Income taxes (309) Net income $ 2,160.000 1.210.000 950,000 580,000 370.00 28,800 341,200 102.360 $ 238,840 oblock References Account balances at the beginning of the year were accounts receivable. $230,000, and inventory. $330,000. All sales were on account Assets at the beginning of the year totaled $1,060,000, and the stockholders' equity totaled $685,000. Required: Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (.e. 0.1234 should be entered as 12.34).) 1. Gross margin percentage. 2. Net profit margin percentage. 3. Return on total assets. 4. Return on equity. 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 equity 5. Financial Leverage