1. Northern Tech and Southern Innovations reported the following for 2023:

Northern Tech:

• Revenue: $90 million
• COGS: $54 million
• Operating Expenses: $30 million
• Net Income: $6 million
• Total Assets: $110 million
• Total Liabilities: $50 million

Southern Innovations:

• Revenue: $85 million
• COGS: $50 million
• Operating Expenses: $32 million
• Net Income: $3 million
• Total Assets: $105 million
• Total Liabilities: $55 million

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