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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

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:

(millions)

Sales $850

Net income 17

Total assets 215

Total debt 105

Evaluate the grocery chain's claim. What is the basis for the statement? Is this

claim misleading? Why or why not?

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