Presented below are financial statements (except cash flows) for two not-for-profit organizations. Neither organization has any permanently restricted net assets. Statement of Activities Revenues Program service revenue Contribution revenues Grant revenue Net gains on endowment investments Net assets released from restriction Satisfaction of program restrictions Total revenues Expenses Education program expenses Research program expense Total program service expenses Fund-raising Administration Total supporting service expenses Total expenses Increase in net assets Net assets January 1 Net assets December 31 ABC Not-for-Profit XYZ Not-for-Profit Unrestricted $ 6,295,000 3,397,500 Temporarily Restricted Unrestricted Temporarily Restricted $ 757,000 103,000 $2,320,000 3,270,000 $1,032,000 18,200 464,000 10,174,700 (464,000) 396,000 587,000 6,177,000 (587,000) 445,000 6,321,000 1,566,000 1,263,000 2,606,000 7,584,000 526,000 657,000 4,172,000 391,000 1,236,000 1,183,000 1,627,000 8,767,000 5,799,000 1,407,700 4,215,000 396,000 766,000 $ 5,622,700 $1,162,000 378,000 1,044,500 $1,422,500 445,000 327,000 $ 772,000 Statement of Net Assets Current assets Cash Short-term cash equivalents Supplies inventories Receivables Total current assets Noncurrent assets Noncurrent pledges receivable Endowment investments Land, buildings, and equipment (net) Total noncurrent assets Total assets Current liabilities Accounts payable Total current liabilities Noncurrent liabilities Notes payable Total noncurrent liabilities Total liabilities Net Assets Unrestricted Donor restricted for purpose Donor restricted for endowment Total net assets Total liabilities and net assets ABC Not-for-Profit $ 212,000 272,000 39,000 446,500 969,500 272,000 2,660,000 3,182,000 XYZ Not-for-Profit $ 363,000 99,700 157,000 195,500 815,200 1,775,000 1,775,000 $2,590,200 $ 136,000 6,114,000 $7,083,500 $ 30,000 30,000 136,000 185,500 185,500 215,500 136,000 4,032,000 2,371,500 162,000 82,700 2,660,000 0 6,854,000 $7,069,500 2,454,200 $2,590,200 Required: a. Calculate the following ratios (assume depreciation expense is $757,000 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 Program expense Days cash on hand ABC XYZ Stronger Ratio 86.5% 71.9 % ABC Not-for-Profit Fund-raising efficiency 0.127 0.120 XYZ Not-for-Profit days days XYZ Not-for-Profit Working capital (days) days days ABC Not-for-Profit