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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,

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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 160,000 Merchandise inventory 310,000 Prepaid expenses 9,000 Total current assets 501,000 Property and equipment, net 830 000 Total assets $1,331,000 Liabilities and Stockholders' Equity Liabilities Current liabilities Bonds payable, 10% Total liabilities Stockholders equity Common stock, $10 par value Retained earings Total stockholders equity Total liabilities and stockholders' equity $ 280,000 390,000 670,000 $ 140,000 521,000 661 000 $1,331,000 Castile Products, Inc Income Statement For the Year Ended December 31 Sales $2 290.000 Cost of goods sold 1,170.000 Gross margin 1,120,000 Selling and administrative expenses 640.000 Net operating income 480,000 Interest expense 39.000 441,000 132 300 Net income before taxes Income taxes (30%) Net income $ 308.700 Account balances at the beginning of the year were accounts receivable $230,000 and inventory 5310,000. 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 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 96 3. Return on total assets (Round your percentage answer to 1 decimal place (i ... 0.1234 should be entered as 12.3).) Return on total assets 96 Return on equity (Round your percentage answer to 1 decimal place .e., 0.1234 should be entered as 12.3).) Return on equity 5. Was financial leverage positive or negative for the year? Positive Negative

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