1. Highland Crafts and Lowland Goods reported the following for 2023:

Highland Crafts:

• Revenue: $130 million
• COGS: $78 million
• Operating Expenses: $50 million
• Net Income: $2 million
• Total Assets: $150 million
• Total Liabilities: $70 million

Lowland Goods:

• Revenue: $125 million
• COGS: $75 million
• Operating Expenses: $52 million
• Net Income: $1 million
• Total Assets: $145 million
• Total Liabilities: $75 million

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