The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 23,000 Accounts receivable, net 170,000 Merchandise inventory 320,000 Prepaid expenses 12.000 Total current assets 525,000 Property and equipment, net 830,000 Total assets $1,355,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 220,000 Bonds payable, 10% 330,000 Total liabilities 550,000 Stockholders' equity: Common stock, $5 per value $ 160,000 Retained earnings 645,000 Total stockholders' equity 805,000 Total liabilities and stockholders' equity $1,355,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,300,000 Cost of goods sold 1,170,000 Gross margin 1,130,000 Selling and administrative expenses 650,000 Net operating income 480,000 Interest expense 33,000 Net income before taxes 447,000 Income taxes (30%) 134,100 $ 312,900 Net income Account balances at the beginning of the year were: accounts receivable, $190,000; and inventory, $350,000. All sales were on account. Assets at the beginning of the year totaled $1,030,000, and the stockholders' equity totaled $645,000. 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 2. Net profit margin percentage 3. Return on total assets 4. Return on equity 5. Financial Leverage 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 180,000 Merchandise inventory 340,000 Prepaid expenses 12,000 Total current assets 552.000 Property and equipment, net 870,000 Total assets $1,422,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 270,000 Bonds payable, 11% 340.000 Total liabilities 610,000 Stockholders' equity: Common stock, $10 per value $ 140,000 Retained earnings 672.000 Total stockholders' equity 812,000 Total liabilities and stockholders' equity $1,422,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,180,000 Cost of goods sold 1,260,000 Gross margin 920,000 Selling and administrative expenses 620,000 Net operating income 300,000 Interest expense 37.400 Net income before taxes 262,600 Income taxes (308) 78, 780 Net income $ 183,820 Account balances at the beginning of the year were: accounts receivable, $190,000, and inventory, $350,000. All sales were on account. Assume that Castile Products, Inc., paid dividends of $3.35 per share during the year. Also assume that the company's common stock had a market price of $61 at the end of the year and there was no change in the number of outstanding shares of common stock during the year. Required: Compute financial ratios as follows: 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your percentage final answer to 2 decimal places. (i.e., 0.1234 should be entered as 12.34).) 3. Dividend yield ratio. (Round your percentage answer to 2 decimal places. (i.e., 0.1234 should be entered as 12.34).) 4. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.) 1. Earnings per share 2. Dividend payout ratio 3. Dividend yield ratio 4. Price-earnings ratio 5. Book value per share