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-ProfitXYZ Not-for-ProfitStatement of ActivitiesUnrestrictedTemporarily

RestrictedUnrestrictedTemporarily

RestrictedRevenuesProgram service revenue$5,603,000$2,266,000Contribution revenues3,347,500$766,0003,240,000Grant revenue97,600$1,026,600Net gains on endowment investments21,500Net assets released from restrictionSatisfaction of program restrictions466,000(466,000)385,000(385,000)Total revenues9,438,000397,6005,891,000641,600ExpensesEducation program expenses5,645,0001,567,000Research program expense1,272,0002,272,000Total program service expenses6,917,0003,839,000Fund-raising479,000366,000Administration666,0001,237,000Total supporting service expenses1,145,0001,603,000Total expenses8,062,0005,442,000Increase in net assets1,376,000397,600449,000641,600Net assets January 14,224,000767,0001,057,500336,000Net assets December 31$5,600,000$1,164,600$1,506,500$977,600Statement of Net AssetsABC Not-for-ProfitXYZ Not-for-ProfitCurrent assetsCash$230,600$364,000Short-term cash equivalents273,000103,000Supplies inventories36,000190,000Receivables443,500190,100Total current assets983,100847,100Noncurrent assetsNoncurrent pledges receivable266,600Endowment investments2,630,000Land, buildings, and equipment (net)3,179,0001,784,000Total noncurrent assets6,075,6001,784,000Total assets$7,058,700$2,631,100Current liabilitiesAccounts payable$27,000$133,000Total current liabilities27,000133,000Noncurrent liabilitiesNotes payable182,500Total noncurrent liabilities182,500Total liabilities209,500133,000Net AssetsUnrestricted4,065,0002,404,500Donor restricted for purpose156,60093,600Donor restricted for endowment2,630,0000Total net assets6,851,6002,498,100Total liabilities and net assets$7,061,100$2,631,100

Required:

a.Calculate the following ratios (assume depreciation expense is $790,000 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.)