The financial statements for Castile Products, Inc., are given below:

Account balances at the beginning of the year were: accounts receivable, $160,000; and inventory, $290,000. All sales were on account. Assets at the beginning of the year totaled $1,060,000, and the stockholders' equity totaled $715,000.

1.Gross margin percentage.(Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

2.Net profit margin percentage.(Round your answer to the nearest whole percentage place (i.e., 0.1234 should be entered as 12%).)

3.Return on total assets.(Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

4.Return on equity.(Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

5.Was financial leverage positive or negative for the year?

Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash 18,000 Accounts receivable, net 180,000 Merchandise inventory 400,000 Prepaid expenses 10,000 Total current assets 608,000 Property and equipment, net 870,000 Total assets $1,478,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 220,000 Bonds payable, 12% 320,000 Total liabilities 540,000 Stockholders' equity: Common stock, $10 par value $ 150,000 Retained earnings 788,000 Total stockholders' equity 938,000 Total liabilities and stockholders' equity $1,478,000Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,260,000 Cost of goods sold 1,220,000 Gross margin 1,040,000 Selling and administrative expenses 580,000 Net operating income 460,000 Interest expense 38.400 Net income before taxes 421,600 Income taxes (30%) 126.480 Net income $ 295,120