The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 20,000 Accounts receivable, net 170,000 Merchandise inventory 380,000 Prepaid expenses 9,000 Total current assets 579,000 Property and equipment, net 850,000 Total assets $1,429,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 260,000 Bonds payable, 12% 320,000 Total liabilities 580,000 Stockholders' equity: Common stock, $10 per value $ 200,000 Retained earnings 649,000 Total stockholders' equity 849,000 Total liabilities and $1,429,000 stockholders' equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,290,000 Cost of goods sold 1,240,000 Gross margin 1,050,000 Selling and administrative 570,000 expenses Net operating income 480,000 Interest expense 38, 400 Net income before taxes 441,600 Income taxes (30%) 132, 480 Net income $ 309, 120 Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory, $280,000. All sales were on account. Assets at the beginning of the year totaled $1,080,000, and the stockholders' equity totaled $665,000. Required: Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.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? % % Gross margin 1. percentage Net profit margin 2. percentage 3. Return on total assets 4. Return on equity 5. Financial Leverage % %