1. Sunrise Manufacturing and Sunset Supplies reported the following for 2023:

Sunrise Manufacturing:

• Revenue: $80 million
• COGS: $48 million
• Operating Expenses: $25 million
• Net Income: $7 million
• Total Assets: $100 million
• Total Liabilities: $45 million

Sunset Supplies:

• Revenue: $75 million
• COGS: $42 million
• Operating Expenses: $28 million
• Net Income: $5 million
• Total Assets: $95 million
• Total Liabilities: $50 million

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