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, 8% Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 23,000 200,000 370,000 8,000 601,000 840,000 $1,441,000 $ 260,000 330,000 590,000 $ 170,000 681,000 851,000 $1,441,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,200,000 Cost of goods sold 1,240,000 Gross margin 960,000 Selling and administrative expenses 580,000 Net operating income 380,000 Interest expense 26,400 Net income before taxes 353,600 Income taxes (30%) 106,080 Net income $ 247,520 Net income before taxes Income taxes (30%) Net income 353,600 106,080 $ 247,520 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 $1,070,000, and the stockholders' equity totaled $695,000. 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 3. Return on total assets 4. Return on equity 5. Financial Leverage %