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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

  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.

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