3.

4. In response to complaints about high prices, a grocery store chain runs the following advertising campaign: If you pay your child 75 cents to go buy $25 dollars of groceries, then your child makes twice as much on the trip as we do. Youve collected the following information from the grocery chains financial statements:

• Sales: $225 million
• Net income: $3.375 million
• Total Assets: $40 million
• Total debt: $17 million

Evaluate the grocery chains claim. What is the basis or the statement? Is this claim misleading? Why or why not?