The financial statements for Castile Products, Incorporated are given below:Castile Products, IncorporatedBalance SheetDecember 31AssetsCurrent assets:$ 23,000230,000390,0008,000651,000CashAccounts receivable, netMerchandise inventoryPrepaid expensesTotal current assetsProperty and equipment, net820,000Total assets$ 1,471,000Liabilities and Stockholders' EquityLiabilities:$ 250,000360,000610,000Current liabilitiesBonds payable, 10%Total liabilitiesStockholders' equity:Common stock, $10 per valueRetained earningsTotal stockholders' equity$ 170,000691,000861,000Total liabilities and stockholders' equity$ 1,471,000Castile Products, IncorporatedIncome StatementFor the Year Ended December 31$ 2,190,0001,230,000960,000620,000SalesCost of goods soldGross marginSelling and administrative expensesNet operating incomeInterest expense340,00036,000304,00091,200Net income before taxesIncome taxes (30%)Net income$ 212,800Account balances at the beginning of the year were: accounts receivable, $230,000; and inventory, $270,000. All sales were onaccount. Assets at the beginning of the year totaled $1,000,000, 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 shouldbe 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

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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.

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.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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