The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash 19,000 170,000 330,000 8,000 527,000 830,000 Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net $1,357,000 Total assets Liabilities and Stockholders' Equity Liabilities: 300,000 340,000 640,000 Current liabilities Bonds payable, 9% Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings Total stockholders' equity 110,000 607,000 717,000 $1,357,000 Total liabilities and stockholders' equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense $2,210,000 1,240,000 970,000 570,000 400,000 30,600 369,400 110,820 Net income before taxes Income taxes (30%) Net income 258,580 Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $300,000. All sales were on account. Assets at the beginning of the year totaled $1,020,000, and the stockholders' equity totaled $705,000 Required: Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.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