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, $10 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 19,000 160,000 380,000 7,000 566,000 870,000 $ 1,436,000 $ 250,000 330,000 580,000 $ 130,000 726,000 856,000 $ 1,436,000 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 $ 2,210,000 1,250,000 960,000 620,000 340,000 29,700 310,300 93,090 $ 217,210 Total liabilities and stockholders' equity $ 1,436,000 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 (308) Net income $ 2,210,000 1,250,000 960,000 620,000 340,000 29,700 310,300 93,090 $ 217, 210 Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $340,000. All sales were on account. Assets at the beginning of the year totaled $1,010,000, 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? % % 1. Gross margin percentage 2. Net profit margin percentage 3. Return on total assets 4. Return on equity 5. Financial Leverage % %