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 s 22,000 170,000 330,000 9,000 Total current assets Property and equipment, net 531,000 830,000 Total assets $1,361,000 $ 240.000 390.000 630,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% Total liabilities Stockholders' equity Common stock, $5 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 160,000 571,000 731,000 $1,361,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2.180,000 Cost of goods sold 1.210,000 Gross margin 970,000 Selling and administrative 570,000 expenses Net operating income Interest expense 400,000 39,000 Net income before taxes Income taxes (30%) 361,000 108,300 Net income $ 252,700 Account balances at the beginning of the year were: accounts receivable. $200,000, and inventory, $270,000. All sales were on account. Assets at the beginning of the year totaled $1,090,000, and the stockholders' equity totaled $625,000. 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 % 3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Return on total assets % 4. Return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Return on equity % 5. Was financial leverage positive or negative for the year? Positive Negative