1. Urban Builders and Rural Constructors reported the following for 2023:

Urban Builders:

• Revenue: $100 million
• COGS: $60 million
• Operating Expenses: $35 million
• Net Income: $5 million
• Total Assets: $120 million
• Total Liabilities: $55 million

Rural Constructors:

• Revenue: $95 million
• COGS: $55 million
• Operating Expenses: $38 million
• Net Income: $2 million
• Total Assets: $115 million
• Total Liabilities: $60 million

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