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

Castile Products, Inc. Balance Sheet December 31
Assets
Current assets:
Cash				$	21,000
Accounts receivable, net					250,000
Merchandise inventory					360,000
Prepaid expenses					8,000
Total current assets					639,000
Property and equipment, net					810,000
Total assets				$	1,449,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities				$	200,000
Bonds payable, 10%					350,000
Total liabilities					550,000
Stockholders equity:
Common stock, $5 par value				$	160,000
Retained earnings					739,000
Total stockholders equity					899,000
Total liabilities and stockholders' equity				$	1,449,000

Castile Products, Inc. Income Statement For the Year Ended December 31
Sales	$	2,250,000
Cost of goods sold		1,250,000
Gross margin		1,000,000
Selling and administrative expenses		580,000
Net operating income		420,000
Interest expense		35,000
Net income before taxes		385,000
Income taxes (30%)		115,500
Net income	$	269,500

Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory, $270,000. All sales were on account. Assets at the beginning of the year totaled $1,010,000, and the stockholders equity totaled $645,000.

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?