The financial statements for Castile Products, Inc., are given below:

Account balances at the beginning of the year were: accounts receivable, $210,000; 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:

1.	Gross margin percentage. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

2.	Net profit margin percentage. (Round your answer to the nearest whole percentage place (i.e., 0.1234 should be entered as 12%).)

3.	Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

4.	Return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

5.

Was financial leverage positive or negative for the year?

	Positive
	Negative

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 $ 21,000 200,000 320,000 6,000 547,000 900,000 Total assets $1,447,000 $ 290,000 300,000 590,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 11% Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 170,000 687,000 857,000 $1,447,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,210,000 Cost of goods sold 1,250,000 Gross margin 960,000 Selling and administrative expenses 610,000 Net operating income 350,000 Interest expense 33,000 Net income before taxes Income taxes (30%) Net income 317,000 95, 100 $ 221,900