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 ABC Not-for-Profit Unrestricted Temporarily Restricted XYZ Not-for-Profit Temporarily Unrestricted Restricted $ 6,895,000 3,457,500 $ 763,000 109,000 $2,380,000 3,330,000 $1,038,000 18,800 476,000 10,847,300 (476,000) 396,000 767,000 6,477,000 (767,000) 271,000 6,921,000 1,572,000 1,269,000 2,906,000 8,190,000 586,000 663,000 4,478,000 421,000 1,242,000 1,249,000 1,663,000 9,439,000 1,408,300 4,221,000 6,141,000 $ 5,629,300 396,000 772,000 $1,168,000 336,000 271,000 1,050,500 $1,386,500 333,000 $ 604,000 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 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 ABC Not-for-Profit XYZ Not-for-Profit $ 218,000 $ 369,000 100,300 163,000 201,500 833,800 278,000 45,000 452,500 993,500 3,188,000 278,000 2,720,000 1,781,000 6,186,000 $7,179,500 1,781,000 $2,614,800 $ 36,000 $ 142,000 36,000 142,000 191,500 191,500 227,500 142,000 2,377,500 168,000 2,720,000 95,300 0 6,926,000 $7,153,500 2,472,800 $2,614,800 4,038,000 Required: a. Calculate the following ratios (assume depreciation expense is $763,000 for both organizations and is allocated among program Land, buildings, and equipment (net) Total noncurrent assets Total assets Current liabilities 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 3,188,000 6,186,000 $7,179,500 $ 36,000 36,000 191,500 1,781,000 1,781,000 $2,614,800 $ 142,000 142,000 191,500 227,500 142,000 4,038,000 168,000 2,377,500 95,300 2,720,000 0 6,926,000 $7,153,500 2,472,800 $2,614,800 Required: a. Calculate the following ratios (assume depreciation expense is $763,000 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