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.