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 Temporarily Temporarily Statement of Activities Unrestricted Restricted Unrestricted Restricted Revenues Program service revenue $5,595,000 $2,250,000 Contribution revenues 3,327,500 $ 750,000 3,200,000 Grant revenue 96,000 $1,025,000 Net gains on endowment investments 17,500 Net assets released from restriction Satisfaction of program restrictions 450,000 (450,000) 377,000 (377.000) Total revenues 9, 390,000 396,000 5,827,000 648,000 Expenses Education program expenses 5,621,000 1,559,000 Research program expenso 1,256,000 2,256,000 Total program service expenses 6,877,000 3,815,000 Fundraising 456,000 356,000 Administration 650,000 1,229,000 Total supporting service expenses 1, 106,000 1,585,000 Total expenses 7,983,000 5,400,000 Increase in net assets 1, 407.000 396,000 427,000 648,000 Net assets January 1 4,200,000 759.000 1,337,500 320,000 Net assets December 31 $5,615,000 $1,155,000 $1,464,500 $ 968,000 ABC Not-for-Profit XYZ Not-for-profit $ 105,000 265,000 32,000 239,500 641,500 $ 256,000 99,000 150,000 88,500 593,500 STATEMENT OF NET ASSETS Current assets Cash Short-term investments Supplies inventories Receivables Total current assets Noncurrent assets Pledges receivable Long-term 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 Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets 465,000 2,590,000 3,275,000 6,330,000 $6,971,500 1, 968,000 1,968,000 $2,561,500 $ 23,000 23,000 $ 129,000 129,000 178,500 178,500 201,500 129,000 5,615,000 1,155,000 1,464,500 968,000 6, 770,000 $6,971,500 2,432,500 $2,561,500 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.) Stronger Ratio ABC % XYZ % RATIO Program expense Fundraising officiency Working capital days days