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 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 progran expenses Research program expense Unrestricted Temporarily Restricted Unrestricted Temporarily Restricted $ 6,295,000 3,397,500 $ 757,000 183,000 $2,320,000 3,270,000 $1,032,000 18,200 464,000 (464,000) 10,174,700 396,000 587,000 6,177,000 (587,000) 445,000 6,321,000 1,566,000 1,263,000 2,606,000 Total program service expenses 7,584,000 Fund-raising Administration 526,000 657,000 Total supporting service expenses Total expenses Increase in net assets Net assets January 1 Net assets December 31 1,183,000 8,767,000 1,407,700 4,215,000 $ 5,622,700 396,000 766,000 $1,162,000 4,172,000 391,000 1,236,000 1,627,000 5,799,000 378,000 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 ABC Not-for-Profit XYZ Not-for-Profit $ 212,000 446,500 969,500 272,000 39,000 $ 363,000 99,700 157,000 195,500 815,200 Noncurrent assets Noncurrent pledges receivable 272,000 Endowment investments 2,660,000 Land, buildings, and equipment (net) 3,182,000 1,775,000 Total noncurrent assets 6,114,000 1,775,000 Total assets $7,083,500 Current liabilities Accounts payable 30,000 Total current liabilities 30,000 $2,590,200 $ 136,000 136,000 Noncurrent liabilities Notes payable 185,500 Total noncurrent liabilities 185,500 Total liabilities 215,500 Net Assets Unrestricted 4,032,000 136,000 2,371,500 Donor restricted for purpose Donor restricted for endowment Total net assets Total liabilities and net assets 162,000 2,660,000 6,854,000 $7,069,500 82,700 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 ABC % XYZ % Stronger Ratio Fund-raising efficiency Days cash on hand days days Working capital (days) days days