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

Castile Products, Inc.

Balance Sheet

December 31AssetsCurrent assets:Cash$23,000Accounts receivable, net200,000Merchandise inventory340,000Prepaid expenses8,000Total current assets571,000Property and equipment, net850,000Total assets$1,421,000Liabilities and Stockholders' EquityLiabilities:Current liabilities$240,000Bonds payable, 10%320,000Total liabilities560,000Stockholders' equity:Common stock, $5 per value$100,000Retained earnings761,000Total stockholders' equity861,000Total liabilities and stockholders' equity$1,421,000

Castile Products, Inc.

Income Statement

For the Year Ended December 31Sales$2,220,000Cost of goods sold1,220,000Gross margin1,000,000Selling and administrative expenses620,000Net operating income380,000Interest expense32,000Net income before taxes348,000Income taxes (30%)104,400Net income$243,600

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 $1,050,000, and the stockholders' equity totaled $665,000.

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?

9 Answer is complete but not entirely correct. _ Gross margin percentage 45.05 0 Net prot margin _