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 400,000 Prepaid expenses 7,000 Total current assets 590,000 Property and equipment, net 900,000 Total assets $ 1,490,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 290,000 350,000 Bonds payable, 12% Total liabilities Stockholders' equity: 640,000 Common stock, $5 per value $ 200,000 Retained earnings 650,000 Total stockholders' equity 650,000 Total liabilities and stockholders' equity $ 1,490,000 Castile Products, Incorporated Income Statement For the Year Ended December 31- Sales $ 2,270,000 1,210,000 Cost of goods sold Gross margin 1,060,000 Selling and administrative expenses. 610,000 Net operating income i 450,000 Interest expense 42,000 Net income before taxes 408,000 122,400 Income taxes (30%) $285,600 Net income Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $300,000. All sales were on account. Assets at the beginning of the year totaled $1,080,000, and the stockholders' equity totaled $705,000. Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $300,000. All sales were on account. Assets at the beginning of the year totaled $1,080,000, and the stockholders' equity totaled $705,000. 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