QPark reported $860,000 of operating income and $750,000 of net income. The income tax rate is 30 percent. Below are selected accounts and amounts (in thousands) from QPark's financial statements for the year ending December 31:
|
Sales revenue
|
$ 8,500
|
Equipment
|
$20,400
|
|
Interest expense
|
300
|
Long-term debt
|
3,600
|
|
Retained earnings
|
14,000
|
Income taxes payable
|
1,100
|
|
Common stock
|
12,000
|
Total assets
|
45,400
|
Calculate the return on assets for QPark. Explain what information this ratio provides for investors.