Question: Profit Margin. 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:
(in millions)
Sales $790.00
Net income 15.80
Total assets 365.00
Total debt 229.80
Evaluate the grocery chain's claim. What is the basis for the statement? Is this claim misleading? Why or why not?