The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 19,000 190,000 370,000 10,000 Total current assets Property and equipment, net 589,000 860,000 Total assets $1,449,000 Liabilities and Stockholders' Equity Liabilities $ 280,000 Current liabilities Bonds payable, 8% 310,000 590,000 $ 150,000 Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings 709,000 859,000 $1,449,000 Total stockholders' equity Total liabilities and stockholders' equity Castile Products, Inc. Income Statement For the Year Ended December 31 $2,120,000 1,220,000 Sales Cost of goods sold Gross margin Selling and administrative expenses 900,000 620,000 280,000 24,800 Net operating income Interest expense Net income before taxes Income taxes (30%) 255,200 76,560 $ 178,640 Net income Account balances at the beginning of the year were: accounts receivable, $220,000; and inventory, $280,000. All sales were on account. Assets at the beginning of the year totaled $1,060,000, and the stockholders' equity totaled $705,000. Required: Compute the following: 1. Gross margin percentage. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Gross margin percentage 2. Net profit margin percentage. (Round your answer to the nearest whole percentage place (i.e., 0.1234 should be entered as 12%).) Net profit margin percentage 3. Return on total assets. (Round your percentage answer to 1 decimal place (ie, 0.1234 should be entered as 12.3).) Return on total assets 4. Return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Return on equity 5. Was financial leverage positive or negative for the year? Positive Negative