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
Statement of Activities	Unrestricted				Temporarily Restricted				Unrestricted				Temporarily Restricted
Revenues
Program service revenue	$	6,995,000							$	2,390,000
Contribution revenues		3,467,500			$	764,000				3,340,000
Grant revenue						110,000							$	1,039,000
Net gains on endowment investments		18,900
Net assets released from restriction
Satisfaction of program restrictions		478,000				(478,000	)			797,000				(797,000	)
Total revenues		10,959,400				396,000				6,527,000				242,000
Expenses
Education program expenses		7,021,000								1,573,000
Research program expense		1,270,000								2,956,000
Total program service expenses		8,291,000								4,529,000
Fund-raising		596,000								426,000
Administration		664,000								1,243,000
Total supporting service expenses		1,260,000								1,669,000
Total expenses		9,551,000								6,198,000
Increase in net assets		1,408,400				396,000				329,000				242,000
Net assets January 1		4,222,000				773,000				1,051,500				334,000
Net assets December 31	$	5,630,400			$	1,169,000			$	1,380,500			$	576,000

Statement of Net Assets	ABC Not-for-Profit						XYZ Not-for-Profit
Current assets
Cash		$	219,000					$	370,000
Short-term cash equivalents			279,000						100,400
Supplies inventories			46,000						164,000
Receivables			453,500						202,500
Total current assets			997,500						836,900
Noncurrent assets
Noncurrent pledges receivable			279,000
Endowment investments			2,730,000
Land, buildings, and equipment (net)			3,189,000						1,782,000
Total noncurrent assets			6,198,000						1,782,000
Total assets		$	7,195,500					$	2,618,900
Current liabilities
Accounts payable		$	37,000					$	143,000
Total current liabilities			37,000						143,000
Noncurrent liabilities
Notes payable			192,500
Total noncurrent liabilities			192,500
Total liabilities			229,500						143,000
Net Assets
Unrestricted			4,039,000						2,378,500
Donor restricted for purpose			169,000						97,400
Donor restricted for endowment			2,730,000						0
Total net assets			6,938,000						2,475,900
Total liabilities and net assets		$	7,167,500					$	2,618,900

Required: a. Calculate the following ratios (assume depreciation expense is $764,000 for both organizations and is allocated among program and supporting expenses):

• Program expense.
• Fund-raising efficiency.
• Days cash on hand.
• Working capital (expressed in days).

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" answers to 1 decimal place and "Fund-raising efficiency" answers to 3 decimal places and "Days cash on hand", "Working capital" answers to nearest whole number.)

Ratios ABC Stronger Ratio XYZ % % Program expense Fund-raising efficiency Days cash on hand Working capital (days) days days days days Ratios ABC Stronger Ratio XYZ % % Program expense Fund-raising efficiency Days cash on hand Working capital (days) days days days days