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 Total current assets Property and equipment, net Total assets 23,000 170,000 390,000 8,000 591,000 830,000 $1,421,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% $ 300,000 340,000 640,000 Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 150,000 631,000 781,000 $1,421,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,110,000 Cost of goods sold 1,220,000 890,000 600,000 Gross margin Selling and administrative expenses Net operating income Interest expense 290,000 34,000 Net income before taxes Income taxes (30%) Net income 256,000 76,800 $ 179,200 Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $350,000. All sales were on account. Assets at the beginning of the year totaled $1,020,000, and the stockholders' equity totaled $665,000. 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 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