The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 22,000 Accounts receivable, net 190,000 Merchandise inventory 400,000 Prepaid expenses 11,000 Total current assets Property and equipment, net 623,000 830,000 Total assets $1,453,000 $ 240,000 380,000 620,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 11% Total liabilities Stockholders' equity Common stock, $10 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 150,000 683,000 833,000 $1,453,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,100,000 Cost of goods sold 1,170,000 Gross margin 930,000 Selling and administrative expenses 610,000 Net operating income 320,000 Interest expense 41,800 278,200 83,460 Net income before taxes Income taxes (30%) Net income $ 194,740 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 $1,030,000, and the stockholders' equity totaled $655,000. 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 (i.e., 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 O Negative