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	$	7,095,000							$	2,400,000
Contribution revenues		3,477,500			$	765,000				3,350,000
Grant revenue						111,000							$	1,040,000
Net gains on endowment investments		19,000
Net assets released from restriction
Satisfaction of program restrictions		480,000				(480,000	)			827,000				(827,000	)
Total revenues		11,071,500				396,000				6,577,000				213,000
Expenses
Education program expenses		7,121,000								1,574,000
Research program expense		1,271,000								3,006,000
Total program service expenses		8,392,000								4,580,000
Fund-raising		606,000								431,000
Administration		665,000								1,244,000
Total supporting service expenses		1,271,000								1,675,000
Total expenses		9,663,000								6,255,000
Increase in net assets		1,408,500				396,000				322,000				213,000
Net assets January 1		4,223,000				774,000				1,052,500				335,000
Net assets December 31	$	5,631,500			$	1,170,000			$	1,374,500			$	548,000

STATEMENT OF NET ASSETS	ABC Not-for-Profit						XYZ Not-for-Profit
Current assets
Cash		$	220,000					$	371,000
Short-term investments			280,000						100,500
Supplies inventories			47,000						165,000
Receivables			454,500						203,500
Total current assets			1,001,500						840,000
Noncurrent assets
Pledges receivable			280,000
Long-term investments			2,740,000
Land, buildings, and equipment (net)			3,190,000						1,783,000
Total noncurrent assets			6,210,000						1,783,000
Total assets		$	7,211,500					$	2,623,000
Current liabilities
Accounts payable		$	38,000					$	144,000
Total current liabilities			38,000						144,000
Noncurrent liabilities
Notes payable			193,500
Total noncurrent liabilities			193,500
Total liabilities			231,500						144,000
Net Assets
Unrestricted			4,040,000						2,379,500
Temporarily restricted			170,000						99,500
Permanently restricted			2,740,000						0
Total net assets			6,950,000						2,479,000
Total liabilities and net assets		$	7,181,500					$	2,623,000

Required: a. Calculate the following ratios (Assume 365 days):

• Program expense.
• Fund-raising efficiency.
• Working capital.

b. For each ratio, which of the two organizations has the stronger ratio. (Do not round intermediate calculations. Round "Program expense" answers to 1 decimal place and "Fund-raising efficiency" answers to 3 decimal places and "Working capital" answers to nearest whole number.)