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Evaluate the grocery chain claim

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Question: Profit Margin. In response to complaints about high prices, a grocery chain runs the following advertising campaign: "If you pay your child $2 to go buy $50 worth of groceries, then your child makes twice as much on the trip as we do." You've collected the following information from the grocery chain's financial statements:

                    (in millions)

Sales                              $790.00

Net income                         15.80

Total assets                      365.00

Total debt                         229.80

Evaluate the grocery chain's claim. What is the basis for the statement? Is this claim misleading? Why or why not?

Reference no: EM131727996

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