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

Castile Products, Incorporated Balance Sheet December 31
Assets
Current assets:
Cash	$ 23,000
Accounts receivable, net	160,000
Merchandise inventory	330,000
Prepaid expenses	9,000
Total current assets	522,000
Property and equipment, net	810,000
Total assets	$ 1,332,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities	$ 200,000
Bonds payable, 11%	310,000
Total liabilities	510,000
Stockholders equity:
Common stock, $10 per value	$ 170,000
Retained earnings	652,000
Total stockholders equity	822,000
Total liabilities and stockholders equity	$ 1,332,000

Castile Products, Incorporated Income Statement For the Year Ended December 31
Sales	$ 2,240,000
Cost of goods sold	1,250,000
Gross margin	990,000
Selling and administrative expenses	620,000
Net operating income	370,000
Interest expense	34,100
Net income before taxes	335,900
Income taxes (30%)	100,770
Net income	$ 235,130

Account balances at the beginning of the year were: accounts receivable, $240,000; and inventory, $300,000. All sales were on account. Assets at the beginning of the year totaled $1,090,000, and the stockholders equity totaled $725,000.

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?