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, 12% Total liabilities Stockholders' equity: Common stock, $5 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 23,000 200,000 380,000 8,000 611,000 840,000 $ 1,451,000 $ 240,000 390,000 630,000 $ 120,000 701,000 821,000 $ 1,451,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $3,315,000 Cost of goods sold 1,137,500 Gross margin 2,177,500 Selling and administrative expenses 650,000 Net operating income 1,527,500 Interest expense 46,800 Net income before taxes 1,480,700 Income taxes (30%) 444,210 Net income $1,036, 490 Account balances at the beginning of the year were: accounts receivable, $190,000; and inventory, $270,000. All sales were on account. Required: Compute the following financial data and ratios: 1. Working capital. 2. Current ratio. (Round your answer to 1 decimal place.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 4. Debt-to-equity ratio. (Round your answer to 2 decimal places.) 5. Times interest earned ratio. (Round your answer to 2 decimal places.) 6. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 7. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 8. Operating cycle. (Round your intermediate calculations and final answer to 1 decimal place.) 1. Working capital 2. Current ratio 3. Acid-test ratio 4. Debt-to-equity ratio 5. Times interest earned ratio 6. Average collection period 7. Average sale period 8. Operating cycle days days days Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $330,000. All sales were on account. Assets at the beginning of the year totaled $1,020,000, and the stockholders' equity totaled $705,000. 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? 1. % Gross margin percentage Net profit margin percentage 2. % 3. Return on total assets % % 4. Return on equity 5. Financial Leverage