1. Prime Retail and Secondary Wholesale reported the following for 2023:

Prime Retail:

• Revenue: $150 million
• COGS: $90 million
• Operating Expenses: $60 million
• Net Income: $0 million
• Total Assets: $170 million
• Total Liabilities: $80 million

Secondary Wholesale:

• Revenue: $145 million
• COGS: $85 million
• Operating Expenses: $62 million
• Net Income: -$2 million
• Total Assets: $165 million
• Total Liabilities: $85 million

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