W12 Homework: Chapter 14-2 #4

The financial statements for Castile Products, Incorporated are given below: Account balances at the beginning of the year were: accounts receivable, $160,000; and inventory, $330,000. All sales were on account. Assets at the beginning of the year totaled $1,020,000, 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., 0.1234 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