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 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 11 Total liabilities Stockholders' equity: Common stock, $5 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 20,000 170,000 330,000 10,000 530,000 820,000 $1,350,000 $ 290,000 310,000 600,000 $ 130,000 620,000 750,000 $1,350,000 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. 11 $2,170,000 1,170,000 1,000,000 560,000 440,000 34.100 Check my wor TOO Sales Castile Products, Inc. Income Statement For the Year Ended December 31 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $2,170,000 1,170,000 1,000,000 560,000 440,000 34,100 405,900 121,770 $ 284,130 Check my wor 100 Account balances at the beginning of the year were: accounts receivable, $200,000; and inventory, $340,000. All sales were on account. Assets at the beginning of the year totaled $1,080,000, and the stockholders' equity totaled $675,000. 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 9 Datum ne tatal sende % Check my wor 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 Prev 4 of 6 Next > TOO