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	$	5,595,000							$	2,250,000
Contribution revenues		3,327,500			$	750,000				3,200,000
Grant revenue						96,000							$	1,025,000
Net gains on endowment investments		17,500
Net assets released from restriction
Satisfaction of program restrictions		450,000				(450,000	)			377,000				(377,000	)
Total revenues		9,390,000				396,000				5,827,000				648,000
Expenses
Education program expenses		5,621,000								1,559,000
Research program expense		1,256,000								2,256,000
Total program service expenses		6,877,000								3,815,000
Fund-raising		456,000								356,000
Administration		650,000								1,229,000
Total supporting service expenses		1,106,000								1,585,000
Total expenses		7,983,000								5,400,000
Increase in net assets		1,407,000				396,000				427,000				648,000
Net assets January 1		4,208,000				759,000				1,037,500				320,000
Net assets December 31	$	5,615,000			$	1,155,000			$	1,464,500			$	968,000

Statement of Net Assets	ABC Not-for-Profit						XYZ Not-for-Profit
Current assets
Cash		$	205,000					$	356,000
Short-term cash equivalents			265,000						99,000
Supplies inventories			32,000						150,000
Receivables			439,500						188,500
Total current assets			941,500						793,500
Noncurrent assets
Noncurrent pledges receivable			265,000
Endowment investments			2,590,000
Land, buildings, and equipment (net)			3,175,000						1,768,000
Total noncurrent assets			6,030,000						1,768,000
Total assets		$	6,971,500					$	2,561,500
Current liabilities
Accounts payable		$	23,000					$	129,000
Total current liabilities			23,000						129,000
Noncurrent liabilities
Notes payable			178,500
Total noncurrent liabilities			178,500
Total liabilities			201,500						129,000
Net Assets
Unrestricted			4,025,000						2,364,500
Donor restricted for purpose			155,000						68,000
Donor restricted for endowment			2,590,000						0
Total net assets			6,770,000						2,432,500
Total liabilities and net assets		$	6,971,500					$	2,561,500

Required: a. Calculate the following ratios (assume depreciation expense is $750,000 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.)