1. Mountain Ventures and Valley Enterprises reported the following for 2023:

Mountain Ventures:

• Revenue: $140 million
• COGS: $84 million
• Operating Expenses: $55 million
• Net Income: $1 million
• Total Assets: $160 million
• Total Liabilities: $75 million

Valley Enterprises:

• Revenue: $135 million
• COGS: $80 million
• Operating Expenses: $58 million
• Net Income: -$3 million
• Total Assets: $155 million
• Total Liabilities: $80 million

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