The financial statements for Castile Products, Incorporated are given below:

Castile Products, Incorporated

Balance Sheet

December $31$

Assets

Current assets:

Cash $ $22,000$

Accounts receivable, net $210,000$

Merchandise inventory $350,000$

Prepaid expenses $11,000$

Total current assets $593,000$

Property and equipment, net $840,000$

Total assets $ $1,433,000$

Liabilities and Stockholders' Equity

Liabilities:

Current liabilities $ $200,000$

Bonds payable, $9\%370,000$

Total liabilities $570,000$

Stockholders$$ equity:

Common stock, $$10$ per value $ $110,000$

Retained earnings $753,000$

Total stockholders$$ equity $863,000$

Total liabilities and stockholders$$ equity $ $1,433,000$

Castile Products, Incorporated

Income Statement

For the Year Ended December $31$

Sales $ $2,140,000$

Cost of goods sold $1,230,000$

Gross margin $910,000$

Selling and administrative expenses $580,000$

Net operating income $330,000$

Interest expense $33,300$

Net income before taxes $296,700$

Income taxes $(30\%)89,010$

Net income $ $207,690$

Account balances at the beginning of the year were: accounts receivable, $$160,000$; and inventory, $$280,000.$ All sales were on account. Assets at the beginning of the year totaled $$1,080,000,$ and the stockholders$$ equity totaled $$645,000.$

Required:

Compute the following: $($For Requirements $1$ to $4,$ enter your percentage answers rounded to $2$ decimal places $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34).)$

$1.$ 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?