1. Evergreen Landscapes and Desert Blooms Nurseries reported the following for 2023:

Evergreen Landscapes:

• Revenue: $220 million
• COGS: $132 million
• Operating Expenses: $95 million
• Net Income: -$7 million
• Total Assets: $240 million
• Total Liabilities: $115 million

Desert Blooms Nurseries:

• Revenue: $215 million
• COGS: $125 million
• Operating Expenses: $98 million
• Net Income: -$8 million
• Total Assets: $235 million
• Total Liabilities: $120 million

Compare the gross profit margins of both companies. Calculate the operating profit margins. Determine which company has a better debt-to-equity ratio.