Evaluate the grocery chain claim

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Reference no: EM133006243

In response to complaints about high prices, a grocery chain runs the following advertising campaign: "If you pay your child $3 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 $750
Net income 22.5
Total assets 420
Total debt 280

Problem 1: Evaluate the grocery chain's claim. What is the basis for the statement? Is this claim misleading? Why or why not?

Reference no: EM133006243

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