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 $ 21,000 170,000 300,000 7,000 498,000 830,000 Total assets $1,328,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% $ 210,000 380,000 590,000 Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings Total stockholders' equity $ 170,000 568,000 738,000 Total liabilities and stockholders' equity $1,328,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,270,000 Cost of goods sold 1,180,000 1,090,000 650,000 Gross margin Selling and administrative expenses Net operating income Interest expense 440,000 38,000 Net income before taxes Income taxes (30%) 402,000 120,600 Net income $ 281,400 Account balances at the beginning of the year were: accounts receivable, $210,000; and inventory, $340,000. All sales were on account. Assets at the beginning of the year totaled $1,000,000, and the stockholders' equity totaled $675,000. 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).) 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? Positive Negative