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 $ 24,000 170,000 360,000 8,000 Total current assets Property and equipment, net 562,000 810,000 Total assets $1,372,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 9% $ 250,000 320,000 570,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings $ 120,000 682,000 Total stockholders' equity 802,000 Total liabilities and stockholders' equity $1,372,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,170,000 Cost of goods sold 1,240,000 Gross margin Selling and administrative expenses 930,000 590,000 Net operating income Interest expense 340,000 28,800 Net income before taxes Income taxes (30%) 311,200 93,360 Net income $ 217,840 Account balances at the beginning of the year were: accounts receivable, $240,000; and inventory $280,000. All sales were on account. Assets at the beginning of the year totaled $1,080,000, and the stockholders' equity totaled $665,000. Account balances at the beginning of the year were: accounts receivable, $240,000; and inventory, $280,000. All sales were on account. Assets at the beginning of the year totaled $1,080,000, 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 Negative