The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assetst Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 103 Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 22.000 200,000 340,000 6,000 568,000 910,000 $1,478,000 $ 210,000 350,000 560,000 $ 190,000 728.000 918,000 $1,478,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,290,000 Cost of goods sold 1,190,000 Gross margin 1,100,000 Selling and administrative expenses 640,000 Net operating income 460,000 Interest expense 35,000 Net Income before taxes 425,000 Income taxes (30%) 127,500 Net Income $ 297,500 Account balances at the beginning of the year were: accounts receivable, $230,000; and inventory, $270,000. All sales were on account. Assets at the beginning of the year totaled $1,080,000, and the stockholders' equity totaled $695,000. Required: Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (.e., 0.1234 should be entered as 12.34).) 1. Gross margin percentage. 2. Net profit margin percentage. 3. Return on total assets. 4. Return on equity. 5. Was financial leverage positive or negative for the year? 1. Gross margin percentage 2. Nel profit margin percentage 3. Return on total assets 4. Return on equity