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 $ 24,000 200,000 390,000 10,000 Total current assets Property and equipment, net 624,000 870,000 Total assets $1,494,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 9% $ 210,000 300,000 510,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings $ 170,000 814,000 Total stockholders' equity 984,000 Total liabilities and stockholders' equity $1,494,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,240,000 Cost of goods sold 1,260,000 Gross margin Selling and administrative expenses 980,000 590,000 Net operating income Interest expense 390,000 27,000 Net income before taxes Income taxes (30%) 363,000 108,900 Net income $ 254,100 Account balances at the beginning of the year were: accounts receivable, $140,000; and inventory, $320,000. All sales were on account. Assets at the beginning of the year totaled $1,040,000, and the stockholders' equity totaled $665,000. 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).) Gross margin percentage % 2. Net profit margin percentage. (Round your answer to the nearest whole percentage place (i.e., 0.1234 should be entered as 12%).) Net profit margin percentage % 3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Return on total assets % 4. Return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Return on equity % 5. Was financial leverage positive or negative for the year? O Positive O Negative