Presented below are financial statements (except cash flows) for two not-for-profit organizations. Neither organization has any permanently restricted net assets.

a. Calculate the following ratios:
• Program expense.
• Fund-raising efficiency.
• Working capital.
b. For each ratio, explain which of the two organizations has the strongerratio.

Statement of ActMitles XYZ Not-for-Profit Temporarly $1,025,000 Net assets released from restriction Satisfaction of time restrictions 325,000 325,000) 396,000 1,037,500 320,000 $5,615.000 $1.155.000 $1.464500 $968.000 XYZ Not-for-proftt Net assets December 31 STATEMENT OF NET ASSETS ABC Not-for Land, buildings, and equipment (net) 1968,000 XYZ Not-for-profit Current Ilabllitles Accounts payable $ 78,000 129,000 129,000 Total current liabilities 78,000 Noncurrent Ilablltles Notes payable 123,500 Total noncurrent liabilities Total Kabilities 201,500 129,000 Net Assets Unrestricted Temporarily restricted Permanentiy restricted 5,615,000 1,155,000 1,464,500 968,000 Total net assets 6,770,000 $ 6,971,500 2,432,500 Total iabilities and net assets S2,561,500