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 Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 8% Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings Total stockholders! equity Total liabilities and stockholders' equity 20,000 250,000 350,000 11,000 631,000 890,000 $1,521,000 $ 270,000 360,000 630,000 $ 200,000 691,000 891,000 $1,521,00 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $2,300,000 1,180,000 1,120,000 630,000 490,000 28,800 461,200 138, 360 $ 322,840 Account balances at the beginning of the year were: accounts receivable, $150,000, and inventory, $310.000. All sales were on account. Assets at the beginning of the year totaled $1.030,000, and the stockholders' equity totaled $635,000. 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. Net profit margin percentage 3. Return on total assets 4 Return on equity 5. Financial Leverage