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The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 24,000 Accounts receivable,

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

Castile Products, Inc. Balance Sheet December 31
Assets
Current assets:
Cash $ 24,000
Accounts receivable, net 170,000
Merchandise inventory 390,000
Prepaid expenses 9,000
Total current assets 593,000
Property and equipment, net 860,000
Total assets $ 1,453,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities $ 220,000
Bonds payable, 12% 380,000
Total liabilities 600,000
Stockholders equity:
Common stock, $10 par value $ 150,000
Retained earnings 703,000
Total stockholders equity 853,000
Total liabilities and stockholders' equity $ 1,453,000

Castile Products, Inc. Income Statement For the Year Ended December 31
Sales $ 2,180,000
Cost of goods sold 1,180,000
Gross margin 1,000,000
Selling and administrative expenses 580,000
Net operating income 420,000
Interest expense 45,600
Net income before taxes 374,400
Income taxes (30%) 112,320
Net income $ 262,080

Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory, $340,000. All sales were on account. Assets at the beginning of the year totaled $1,050,000, and the stockholders equity totaled $635,000.

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).)

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