Problem 3-21 Profit Margin [LO4]

In response to complaints about high prices, a grocery chain runs the following advertising campaign: If you pay your child $4 to go buy $100 worth 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:

(millions)
Sales	$	640.0
Net income		12.8
Total assets		370.0
Total debt		240.0

What is the profit margin for child as a percentage of what they spend and the profit margin for the store? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

	Profit margin
Child	%
Store	%

What is the store's ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

ROE

%