In response to complaints about high prices, a grocery chain runs the following advertising campaign: “If you pay your child 50 cents to go buy $25 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:

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

Transcribed Image Text:

(millions) Sales Net income Total assets Total debt $550.0 5.5 140.0 90.0