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 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 Unrestricted $ 6,595,000 3,427,500 Temporarily Restricted Unrestricted Temporarily Restricted. $ 760,000 $2,350,000 3,300,000 106,000 $1,035,000 18,500 470,000 (470,000) 10,511,000 396,000 677,000 6,327,000 (677,000) 358,000 6,621,000 1,569,000 1,266,000 2,756,000 7,887,000 556,000 660,000 4,325,000 406,000 1,239,000 1,216,000 1,645,000 9,103,000 5,970,000 1,408,000 4,218,000 $ 5,626,000 396,000 769,000 $1,165,000 357,000 1,047,500 $1,404,500 358,000 330,000 $ 688,000 ABC Not-for-Profit $ 215,000 275,000 42,000 449,500 XYZ Not-for-Profit $ 366,000 100,000 160,000 198,500 981,500 824,500 Noncurrent assets Noncurrent pledges receivable 275,000 Endowment investments 2,690,000 Land, buildings, and equipment (net) 3,185,000 1,778,000 Total noncurrent assets 6,150,000 Total assets $7,131,500 1,778,000 $2,602,500 Current liabilities Accounts payable $ Total current liabilities Noncurrent liabilities Notes payable 33,000 33,000 $ 139,000 139,000 188,500 Total noncurrent liabilities Total liabilities Net Assets Unrestricted Donor restricted for purpose Donor restricted for endowment Total net assets Total liabilities and net assets Required: 188,500 221,500 139,000 4,035,000 2,374,500 165,000 2,690,000 89,000 e 6,890,000 $7,111,500 2,463,500 $2,602,500 a. Calculate the following ratios (assume depreciation expense is $760,000 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). Required: a. Calculate the following ratios (assume depreciation expense is $760,000 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 ABC XYZ Stronger Ratio % % Program expense Fund-raising efficiency Days cash on hand days days Working capital (days) days days