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 Temporarily Unrestricted Restricted XYZ Not-for-Profit Temporarily Unrestricted Restricted $5,610,000 3,365,800 $ $2,280,000 3,275,000 780, eee 99,800 $1,628,800 25, eee 488, eee 9,480, eee (480, 800) 399, eee 392, eee 5,947, eee (392, 800) 636,800 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 5,666, eee 1,286, eee 6,952,800 580.009 680, 1,182.eee 8.132.ee 1.348, ege 4,238,808 $5,586,000 1,574,899 2,286. eee 3,860, 373,800 1, 244, eee 1,617,800 5,477,899 470.899 1,075, eee $1,545,800 399,000 774, eee $1,173,600 636, eee 350. eee 986,800 $ ABC Not-for-Profit XYZ Not-for-profit $ $ 265.603 280,899 39. see 447, eee 1,832, 100 371,800 106,500 225, ees 191,500 894,899 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 268, eee 2,665.eas 3,182.509 6,115,500 $7,147,600 1,798, eee 1,798,800 $2,692,899 30,5ee $ 136,500 136, See 30, see 30,500 30,500 $ 136,500 136.509 186,00 186.299 216,500 136,500 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 2,439,50e 116,800 4, 18e eee 158, 2,665, ees 6,923,800 $7,139,500 2,555,500 $2,692,800 Required: a. Calculate the following ratios (assume depreciation expense is $825.000 for both organizations and is allocated among progra 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 "Fund-raising efficlency" answers to 3 decimal places and "Days cash on hand", "Working capital answers to nearest whole number.) Answer is not complete. ABC XYZ % Ratios Program expense Fund-raising efficiency Days cash on hand Working capital (days) Stronger Ratio ABC Not-for-Profit XYZ Not-for-Profit XYZ Not-for-Profit ABC Not-for-Profit days days