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 Temporarily Unrestricted Restricted XYZ Not-for-Profit Temporarily Unrestricted Restricted $5,635,000 3,351,200 $ 745,900 95,400 $2,209, 100 3,141,800 $ 885,200 17,600 452,600 9,456,400 (452,600) 388,700 370,100 5,721,000 (370,100) 515, 100 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 5,661,000 1,316,000 6,977,000 463, 100 690,000 1,153, 100 8,130,100 1,326,300 4,258,000 $5,584,300 1,536,600 2,223,600 3,760,200 360,000 1, 232,000 1,592,000 5,352,200 368, 800 896,100 $1,264,900 388,700 745,300 $1,134,000 515,100 254,400 $ 769,500 ABC Not-for-Profit XYZ Not-for-Profit 83,800 211,700 25,800 193,100 514,400 205,300 79,400 120,300 71,000 476,000 515,000 2,620,000 2,674,300 5,809,300 $6,323,700 2,018,000 2,018,000 $2,494,000 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 $ $ 23,000 23,000 125,600 125,600 178,500 178,500 201,500 125,600 5,655,000 467,200 1,426,200 942,200 6,122,200 $6,323,700 2,368,400 $2,494,000 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.) ABC XYZ Stronger Ratio RATIO Program expense Fund-raising efficiency Working capital days days 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 Temporarily Unrestricted Restricted XYZ Not-for-Profit Temporarily Unrestricted Restricted $5,635,000 3,351,200 $ 745,900 95,400 $2,209, 100 3,141,800 $ 885,200 17,600 452,600 9,456,400 (452,600) 388,700 370,100 5,721,000 (370,100) 515, 100 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 5,661,000 1,316,000 6,977,000 463, 100 690,000 1,153, 100 8,130,100 1,326,300 4,258,000 $5,584,300 1,536,600 2,223,600 3,760,200 360,000 1, 232,000 1,592,000 5,352,200 368, 800 896,100 $1,264,900 388,700 745,300 $1,134,000 515,100 254,400 $ 769,500 ABC Not-for-Profit XYZ Not-for-Profit 83,800 211,700 25,800 193,100 514,400 205,300 79,400 120,300 71,000 476,000 515,000 2,620,000 2,674,300 5,809,300 $6,323,700 2,018,000 2,018,000 $2,494,000 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 $ $ 23,000 23,000 125,600 125,600 178,500 178,500 201,500 125,600 5,655,000 467,200 1,426,200 942,200 6,122,200 $6,323,700 2,368,400 $2,494,000 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.) ABC XYZ Stronger Ratio RATIO Program expense Fund-raising efficiency Working capital days days