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 $ $5,795,000$ $ $2,270,000$

Contribution revenues $3,347,500$ $ $752,0003,220,000$

Grant revenue $98,000$ $ $1,027,000$

Net gains on endowment investments $17,700$

Net assets released from restriction

Satisfaction of program restrictions $454,000(454,000)437,000(437,000)$

Total revenues $9,614,200396,0005,927,000590,000$

Expenses

Education program expenses $5,821,0001,561,000$

Research program expense $1,258,0002,356,000$

Total program service expenses $7,079,0003,917,000$

Fund$-$raising $476,000366,000$

Administration $652,0001,231,000$

Total supporting service expenses $1,128,0001,597,000$

Total expenses $8,207,0005,514,000$

Increase in net assets $1,407,200396,000413,000590,000$

Net assets January $14,210,000761,0001,039,500322,000$

Net assets December $31$ $ $5,617,200$ $ $1,157,000$ $ $1,452,500$ $ $912,000$

Statement of Net Assets ABC Not$-$for$-$Profit XYZ Not$-$for$-$Profit

Current assets

Cash $ $207,000$ $ $358,000$

Short$-$term cash equivalents $267,00099,200$

Supplies inventories $34,000152,000$

Receivables $441,500190,500$

Total current assets $949,500799,700$

Noncurrent assets

Noncurrent pledges receivable $267,000$

Endowment investments $2,610,000$

Land, buildings, and equipment $($net$)3,177,0001,770,000$

Total noncurrent assets $6,054,0001,770,000$

Total assets $ $7,003,500$ $ $2,569,700$

Current liabilities

Accounts payable $ $25,000$ $ $131,000$

Total current liabilities $25,000131,000$

Noncurrent liabilities

Notes payable $180,500$

Total noncurrent liabilities $180,500$

Total liabilities $205,500131,000$

Net Assets

Unrestricted $4,027,0002,366,500$

Donor restricted for purpose $157,00072,200$

Donor restricted for endowment $2,610,0000$

Total net assets $6,794,0002,438,700$

Total liabilities and net assets $ $6,999,500$ $ $2,569,700$

Required:

a$.$ Calculate the following ratios $($assume depreciation expense is $$752,000$ 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.$)$