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 $ 7,495,000 $ 2,440,000 Contribution revenues 3,517,500 $ 769,000 3,390,000 Grant revenue 115,000 $ 1,044,000 Net gains on endowment investments 19,400 Net assets released from restriction Satisfaction of program restrictions 488,000 (488,000 ) 947,000 (947,000 ) Total revenues 11,519,900 396,000 6,777,000 97,000 Expenses Education program expenses 7,521,000 1,578,000 Research program expense 1,275,000 3,206,000 Total program service expenses 8,796,000 4,784,000 Fund-raising 646,000 451,000 Administration 669,000 1,248,000 Total supporting service expenses 1,315,000 1,699,000 Total expenses 10,111,000 6,483,000 Increase in net assets 1,408,900 396,000 294,000 97,000 Net assets January 1 4,227,000 778,000 1,056,500 339,000 Net assets December 31 $ 5,635,900 $ 1,174,000 $ 1,350,500 $ 436,000 Statement of Net Assets ABC Not-for-Profit XYZ Not-for-Profit Current assets Cash $ 224,000 $ 375,000 Short-term cash equivalents 284,000 100,900 Supplies inventories 51,000 169,000 Receivables 458,500 207,500 Total current assets 1,017,500 852,400 Noncurrent assets Noncurrent pledges receivable 284,000 Endowment investments 2,780,000 Land, buildings, and equipment (net) 3,194,000 1,787,000 Total noncurrent assets 6,258,000 1,787,000 Total assets $ 7,275,500 $ 2,639,400 Current liabilities Accounts payable $ 42,000 $ 148,000 Total current liabilities 42,000 148,000 Noncurrent liabilities Notes payable 197,500 Total noncurrent liabilities 197,500 Total liabilities 239,500 148,000 Net Assets Unrestricted 4,044,000 2,383,500 Donor restricted for purpose 174,000 107,900 Donor restricted for endowment 2,780,000 0 Total net assets 6,998,000 2,491,400 Total liabilities and net assets $ 7,237,500 $ 2,639,400

Required: a. Calculate the following ratios (assume depreciation expense is $769,000 for both organizations and is allocated among program and supporting expenses): Fund-raising efficiency. Days cash on hand. Working capital (expressed in days).

ABC Not-for-Profit Temporarily Unrestricted Restricted XYZ Not-for-Profit Temporarily Unrestricted Restricted $ 7,495,000 3,517,500 $2,440,000 3,390,000 $ 769,000 115,000 $1,644,000 19,400 488,000 11,519,900 (488,000) 396,000 947,000 6,777,000 (947,000) 97,000 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 7,521,000 1,275,000 8,796,000 646,000 669,000 1,315,000 10,111,000 1,408,900 4,227,000 $ 5,635,900 1,578,000 3,206,000 4,784,000 451,000 1,248,000 1,699,000 6,483,000 294,000 1,056,500 $1,350,500 396,000 778,000 $1,174,000 97,000 339,000 $ 436,000 ABC Not-for-Profit XYZ Not-for-Profit $ 224,000 284,000 51,000 458,500 1,017,500 $ 375,000 100,900 169,000 207,500 852,400 284,000 2,780,000 3,194,000 6,258,000 $7,275,500 1,787,000 1,787,000 $2,639,400 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 $ 42,000 42,000 $ 148,000 148,000 197,500 197,500 239,500 148,000 4,044,000 174,000 2,780,000 6,998,000 $7,237,500 2,383,500 107,900 0 2,491,400 $2,639,400