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Castile products, Incorporated Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and stockholders' Equity Liabilities : Current liabilities Bonds payable, 10 of Total 1iabilities Stockholders' equity: Common stock, $5 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $6,50035,00070,0003,500115,000185,000$300,000$50,00080,000130,00030,000140,000170,000$300,000 Castile Products, Incorporated Income Statement For the Year Ended December 31 \begin{tabular}{lr} Sales & $820,000 \\ Cost of goods sold & 292,500 \\ Gross margin & 127,500 \\ Selling and administrative expenses & 89,500 \\ Net operating income & 38,000 \\ Interest expense & 8,000 \\ Net income before taxes & 30,000 \\ Income taxes ( 308 ) & 9,000 \\ \hline \end{tabular} Castile products, Incorporated Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and stockholders' Equity Liabilities : Current liabilities Bonds payable, 10 of Total 1iabilities Stockholders' equity: Common stock, $5 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $6,50035,00070,0003,500115,000185,000$300,000$50,00080,000130,00030,000140,000170,000$300,000 Castile Products, Incorporated Income Statement For the Year Ended December 31 \begin{tabular}{lr} Sales & $820,000 \\ Cost of goods sold & 292,500 \\ Gross margin & 127,500 \\ Selling and administrative expenses & 89,500 \\ Net operating income & 38,000 \\ Interest expense & 8,000 \\ Net income before taxes & 30,000 \\ Income taxes ( 308 ) & 9,000 \\ \hline \end{tabular} Account balances at the beginning of the year were; accounts recelvable, $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 (i.e., 0.123.4 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 (i.e., 0.1234 should be entered as 12.3).) 4. Return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 5. Was financial leverage positive or negative for the year