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 $ 6,395,000 $ 2,330,000 Contribution revenues 3,407,500 $ 758,000 3,280,000 Grant revenue 104,000 $ 1,033,000 Net gains on endowment investments 18,300 Net assets released from restriction Satisfaction of program restrictions 466,000 (466,000 ) 617,000 (617,000 ) Total revenues 10,286,800 396,000 6,227,000 416,000 Expenses Education program expenses 6,421,000 1,567,000 Research program expense 1,264,000 2,656,000 Total program service expenses 7,685,000 4,223,000 Fund-raising 536,000 396,000 Administration 658,000 1,237,000 Total supporting service expenses 1,194,000 1,633,000 Total expenses 8,879,000 5,856,000 Increase in net assets 1,407,800 396,000 371,000 416,000 Net assets January 1 4,216,000 767,000 1,045,500 328,000 Net assets December 31 $ 5,623,800 $ 1,163,000 $ 1,416,500 $ 744,000 Statement of Net Assets ABC Not-for-Profit XYZ Not-for-Profit Current assets Cash $ 213,000 $ 364,000 Short-term cash equivalents 273,000 99,800 Supplies inventories 40,000 158,000 Receivables 447,500 196,500 Total current assets 973,500 818,300 Noncurrent assets Noncurrent pledges receivable 273,000 Endowment investments 2,670,000 Land, buildings, and equipment (net) 3,183,000 1,776,000 Total noncurrent assets 6,126,000 1,776,000 Total assets $ 7,099,500 $ 2,594,300 Current liabilities Accounts payable $ 31,000 $ 137,000 Total current liabilities 31,000 137,000 Noncurrent liabilities Notes payable 186,500 Total noncurrent liabilities 186,500 Total liabilities 217,500 137,000 Net Assets Unrestricted 4,033,000 2,372,500 Donor restricted for purpose 163,000 84,800 Donor restricted for endowment 2,670,000 0 Total net assets 6,866,000 2,457,300 Total liabilities and net assets $ 7,083,500 $ 2,594,300 Required: a. Calculate the following ratios (assume depreciation expense is $758,000 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