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North Star Industries and South Pole Enterprises reported the following for 2023: North Star Industries: Revenue: $160 million COGS: $96 million Operating Expenses: $65 million

  1. North Star Industries and South Pole Enterprises reported the following for 2023:

North Star Industries:

    • Revenue: $160 million
    • COGS: $96 million
    • Operating Expenses: $65 million
    • Net Income: -$1 million
    • Total Assets: $180 million
    • Total Liabilities: $85 million

South Pole Enterprises:

    • Revenue: $155 million
    • COGS: $90 million
    • Operating Expenses: $68 million
    • Net Income: -$3 million
    • Total Assets: $175 million
    • Total Liabilities: $90 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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