The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated 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, 9% Total liabilities Stockholders' equity: Common stock, $5 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 20,000 180,000 350,000 6,000 556,000 900,000 $ 1,456,000 $ 260,000 370,000 630,000 $ 120,000 706,000 826,000 $ 1,456,000 Sales Castile Products, Incorporated Income Statement For the Year Ended December 31 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 2,250,000 1,210,000 1,040,000 640,000 400,000 33,300 366,700 110,010 $ 256,690 Account balances at the beginning of the year were: accounts receivable, $230,000; and inventory, $330,000. All sales were on account. Assets at the beginning of the year totaled $1,080,000, and the stockholders' equity totaled $655,000 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