Presented below are financial statements (except cash flows) for two not for profit organizations. Neither organization has any permanently restricted net assets. ABC Not For Profit XYZ Not for Profit Temporarily Statement of activities Temporarily Unrestricted Restricted Revenues Unrestricted Ketricted Program service revenue 1.6,795,000 Contribution revenues $2,370,000 3,447,500 $ 762,000 3,320,000 Grant revenue 108.000 $1,037.000 Net ains on endowment Investments 18,700 Net assets released from restriction Satisfaction of program restrictions 474,000 (474,000) 737.000 (237,000) Total revenues 10,735, 2ee 396,000 6,427,000 380,000 Expenses Education program expenses 6,821,000 1,571,000 Research program expense 1,268,000 2,856,020 Total program service expenses 3,009,000 4.427.000 Fund-raising 576,000 416,000 Administration 662,000 1,241,000 1,238,000 Total supporting service expenses 1,657,000 Total expenses 9,327,000 6,084,000 Increase in net assets 1,408,200 395,000 343,000 300,000 Net assets January 1 4,220,00 771,000 1,049.500 132,000 $ 5,628, 200 $1,167,000 Net assets December 31 51,392,500 $ 632,000 Statement of Assets Current assets Anc Not for Profit XYZ Hati for Profit $ 217,000 277.000 44,000 451, 500 $ 165,000 100,00 162,000 200, 500 30,700 27,000 2,710,000 3.107.000 6174, $7,163,00 1.7. 3.700.000 52,610,700 Short-ters cash equivalents Supplies inventories Receivables Total current assets Noncurrent assets Boncurrent les receivable Endowment investments Lund, buildings, and quipment (net) Total noncurrent assets Total assets Current liabilities Accounts payabile Total current liabilities Noncurrent liabilities Notes payable Total noncurrent liabilities Total liabilities Net Assets Unrestricted Donor restricted for purpose Donor restricted for endomen Total net assets Total liabilities and net assets 5 35,000 35,000 $141.000 141.000 190,500 190, 500 225,500 141,600 2,376,500 93,200 4,037,000 167.000 2.710,000 6,914,000 $7,139,500 2.469.700 52,610,700 Required: a. Calculate the following ratios (assume depreciation expense is $762.000 for both organizations and is allocated among program and supporting expenses): Program expense. Fundraising efficiency. . Dans cash on bandi b. For each ratio, which of the two organizations has the stronger ratio (Assume 365 days in a year. Do not round intermediate calculations. Round "Program expense nuwers to 1 decimal place and "Fund-raising efficiency" answers to 3 decimal places and "Days cosh on hand", "Working copitol" answers to nearest whole number.) Ratios Program expense Fundraising efficiency Days cash on hand Working capital (days) ABC 86.7% 0.137 days days XYZ 728 0.125 days days Stronger Ratio ABC Not for Profit XYZ Not for Profit