The financial statements for Castile Products, Incorporated are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net $ 20,000 Merchandise inventory 220,000 Prepaid expenses 390,000 11,000 Total current assets 641,800 Property and equipment, net 870,000 Total assets $ 1,511,000 Liabilities and Stockholders. Equity Liabilities: Current liabilities $ 210,000 Bonds payable, 10% 380,000 Total liabilities 590,000 Stockholders' equity: Common stock, $5 per value $ 110,000 Retained earnings 811,000 Total stockholders' equity 921,000 Total liabilities and stockholders' equity $ 1,511,000 Castile Products, Incorporated Income Statement For the Year Ended December 31 Sales $ 2,140,000 Cost of goods sold 1,170,000 Gross margin 970,000 Selling and administrative expenses 570,000 Net operating income 400,000 38,000 Interest expense Net income before taxes 362,000 108,600 Income taxes (304) $ 253,400 Net income Account balances at the beginning of the year were: accounts receivable, $190,000; and inventory, $270,000. All sales were on Castile Products, Incorporated Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 2,140,000 1,170,000 970,000 570,000 400,000 38,000 362,800 188,600 $ 253,400 Account balances at the beginning of the year were: accounts receivable, $190,000; and Inventory, $270,000. All sales were on account Assets at the beginning of the year totaled $1,070,000, 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 (.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 % %