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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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