FINANCE ancial Statements Analysis KQue value 10.00 points In response to compla

Question

FINANCE ancial Statements Analysis KQue value 10.00 points In response to complaints about high prices, a grocery chain runs the following advertising campaign 1f you pay your child $4 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 Sales Net income Total assets450.0 Total debt $720.0 28.8 320.0 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.) 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.) References eBook & Resources Worksheet Difficulty: Intermediate

Explanation / Answer

Childs profit margin=4/50=8.00%

Store's profit margin=28.8/720=4.00%

ROE=28.8/(450-320)=22.15%

the above is the answer

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