Profit Margin In response to complaints about high prices, a grocery chain runs the following advertising campaign: ‘If you pay your child £3 to go and 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:

£m Sales 750 Net income 22.5 Total assets 420 Total debt 280 Evaluate the grocery chain’s claim. What is the basis for the statement? Is this claim misleading? Why or why not?

Some recent financial statements for the luxury goods company LVMH Moet Hennessy Louis Vuitton SA follow. Use this information to attempt Problems 3.13–3.16.