Please answer sub questiom 3 and 4 1. Gross margin percentage. (Round your percentage answer to 2 decimal places (i.e., 0.1234should be entered as 12.34).)Gross margin percentage45.37 %2. Net profit margin percentage. (Round your answer to the nearest whole percentage place (i.e.,0.1234 should be entered as 12%).)Net profit margin percentage11 %3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should beentered as 12.3).)Return on total assets17.7 %4. Return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should beentered as 12.3).)Return on equity35.5 % The financial statements for Castile Products, Inc., are given below:Castile Products, Inc.Balance SheetDecember 31AssetsCurrent assets:$ 22,000200,000320,00010,000CashAccounts receivable, netMerchandise inventoryPrepaid expensesTotal current assets552,000830,000Property and equipment, netTotal assets$1,382,000Liabilities and Stockholders' EquityLiabilities:$ 230,000330,000Current liabilitiesBonds payable, 12%Total liabilities560,000Stockholders' equity:Common stock, $10 par valueRetained earnings$ 130,000692,000Total stockholders' equity822,000Total liabilities and stockholders' equity$1,382,000Castile Products, Inc.Income StatementFor the Year Ended December 31SalesCost of goods sold$2,270,0001,240,000Gross marginSelling and administrative expenses1,030,000640,000390,00039,600Net operating incomeInterest expense350,400105,120Net income before taxesIncome taxes (30%)Net income$ 245,280Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory.$350,000. All sales were on account. Assets at the beginning of the year totaled $1,010,000, and thestockholders' equity totaled $705,000.

Average total assets = (beginning total assets + ending total assets)/2 = (1010000+1382000)/2 =…

The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 22,000 200,000 320,000 10,000 552,000 830,000 Total current assets Property and equipment, net Total assets $1,382,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 230,000 330,000 Bonds payable, 12% Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings 560,000 $ 130,000 692,000 Total stockholders' equity 822,000 Total liabilities and stockholders' equity $1,382,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2,270,000 1,240,000 Gross margin Selling and administrative expenses 1,030,000 640,000 Net operating income Interest expense 390,000 39,600 Net income before taxes 350,400 105,120 Income taxes (30%) Net income $ 245,280 Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory, $350,000. All sales were on account. Assets at the beginning of the year totaled $1,010,000, and the stockholders' equity totaled $705,000.