The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 21,000 Accounts receivable, net 220,000 Merchandise inventory 310,000 Prepaid expenses 12,000 Total current assets 563,000 Property and equipment, net 900,000 Total assets $1,463,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 270,000 Bonds payable, 12% 330,000 Total liabilities 600,000 Stockholders' equity: Common stock, $5 per value $ 150,000 Retained earnings 713,000 Total stockholders' equity 863,000 Total liabilities and stockholders' equity $1,463,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,290,000 Cost of goods sold 1,230,000 Gross margin 1,060,000 Selling and administrative expenses 640,000 Net operating income 420,000 Interest expense 39,600 Net income before taxes 380, 400 Income taxes (30%) 114, 120 Net income $ 266, 280 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 $1,010,000, and the stockholders' equity totaled $715,000. 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? % 1. Gross margin percentage 2. Net profit margin percentage 3. Return on total assets 4. Return on equity 5. Financial Leverage % % %