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

Castile Products, Inc.

Balance Sheet

December 31AssetsCurrent assets:Cash$21,000Accounts receivable, net170,000Merchandise inventory300,000Prepaid expenses10,000Total current assets501,000Property and equipment, net850,000Total assets$1,351,000Liabilities and Stockholders' EquityLiabilities:Current liabilities$240,000Bonds payable, 10%340,000Total liabilities580,000Stockholders' equity:Common stock, $10 par value$170,000Retained earnings601,000Total stockholders' equity771,000Total liabilities and stockholders' equity$1,351,000

Castile Products, Inc.

Income Statement

For the Year Ended December 31Sales$2,210,000Cost of goods sold1,180,000Gross margin1,030,000Selling and administrative expenses570,000Net operating income460,000Interest expense34,000Net income before taxes426,000Income taxes (30%)127,800Net income$298,200

Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory, $350,000. All sales were on account. Assets at the beginning of the year totaled $1,040,000, and the stockholders' equity totaled $715,000.

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).)

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).)