1. Tropical Fruits Corp and Arctic Ice Creams Ltd reported the following for 2023:

Tropical Fruits Corp:

• Revenue: $210 million
• COGS: $126 million
• Operating Expenses: $90 million
• Net Income: -$6 million
• Total Assets: $230 million
• Total Liabilities: $110 million

Arctic Ice Creams Ltd:

• Revenue: $205 million
• COGS: $120 million
• Operating Expenses: $92 million
• Net Income: -$7 million
• Total Assets: $225 million
• Total Liabilities: $115 million

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