In response to complaints about high prices, a grocery chain runs the following advertising campaign: “If you pay your child $1.25 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 ................... $680

Net income ........... 8.5

Total assets ......... 380

Total debt ............. 270

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