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 $ 19,000 220,000 330,000 10,000 Total current assets Property and equipment, net 579,000 840,000 Total assets $1,419,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% $ 240,000 310,000 550,000 $ 150,000 719,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 869,000 $1,419,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,260,000 Cost of goods sold 1,190,000 Gross margin 1,070,000 Selling and administrative expenses 660,000 Net operating income 410,000 Income Statement For the Year Ended December 31 Sales $2,260,000 Cost of goods sold 1,190,000 Gross margin 1,070,000 Seling and administrative expenses 660,000 Net operating income 410,000 Interest expense 31,000 379,000 113,700 Net income before taxes Income taxes (30%) Net income $ 265,300 Account balances at the beginning of the year were: accounts receivable, $160,000; and inventory, $330,000. All sales were on account. Assets at the beginning of the year totaled $1,090,000, and the stockholders' equity totaled $685,000. Required: Compute the following: 1. Gross margin percentage. (Round your percentage answer to 2 decimal places (.e., 0.1234 should be entered as 12.34).) Gross margin percentage % 2. Net profit margin percentage. (Round your answer to the nearest whole percentage place (Le. 0.1234 should be entered as 12%).) % Net profit margin percentage 3. Return on total assets. (Round your percentage answer to 1 decimal place (L.o., 0.1234 should be entered as 12.3).) Retum on total assets 4. Return on equity (Round your percentage answer to 1 decimal place (1.e., 0.1234 should be entered as 12.3).) Return on equity % 5. Was financial leverage positive or negative for the year? Positive Negative