The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 22,000 Accounts receivable net 180,000 Merchandise inventory 300,000 Prepaid expenses 10,000 Total current assets 512,000 Property and equipment, net 900,000 Total assets $ 1,412,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 230,000 Bonds payable, 10% 350,000 Total liabilities 580,000 Stockholders equity: Common stock, $10 par value $ 160,000 Retained earnings 672,000 Total stockholders equity 832,000 Total liabilities and stockholders' equity $ 1,412,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $ 2,190,000 Cost of goods sold 1,230,000 Gross margin 960,000 Selling and administrative expenses 570,000 Net operating income 390,000 Interest expense 35,000 Net income before taxes 355,000 Income taxes (30%) 106,500 Net income $ 248,500 Account balances at the beginning of the year were: accounts receivable, $200,000; and inventory, $290,000. All sales were on account. Assets at the beginning of the year totaled $1,090,000, and the stockholders equity totaled $625,000.

3.Return on total Assets

4.Return on Equity