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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

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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 $5,595,000 3,327,500 $2,250,000 3,200,000 $ 750,000 96,000 $1,025,000 17,500 450,000 9.390,000 450,000) 396,000 377,000 5,827,000 (377,000) 640,000 statement of Activities Revenues Program service revenue Contribution revenuen 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 Pund-raising Administration Total supporting service expenses Total expenses Increase in net assets Net assets January 1 Bet assets December 31 5,621,000 1,256,000 6.877.000 455,000 650,000 1.106.000 7.983.000 1, 407,000 4.208,000 $5,615,000 1,559.000 2.256.000 3.815.000 356,000 1.229,000 1.585,000 5,400,000 427,000 1.037.500 53,464,500 396,000 759.000 $1,155,000 640,000 320,000 $ 966,000 ABC Mot-for-Profit XTE Not-for-profit $ 205,000 265,000 32,000 439,500 941,500 $ 356,000 99,000 150,000 139.500 793.500 Statement of Net Assets Current assets Cash Short-term cash equivalents Supplies inventories Receivables Total current assets Noneurrent assets honcurrent pledges receivable Endowment investments Land, buildings, and equipment (net) Total noncurrent assets Total asseta Current liabilities Accounts payable Total current liabilities Honcurrent 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 aseta 265,000 2,590,000 3,175,000 6,030, ODO 56,971, 500 1.768.000 3.763,000 $2,561,500 23,000 23,000 $ 129,000 129,000 178,500 178,500 2011.500 129,000 2,364,500 68.000 4,025,000 155,000 2.590.000 5,770,000 56.971.500 2,432,500 52,561,500 Required: a. Calculate the following ratios (assume depreciation expense is $750,000 for both organizations and is allocated among program and supporting expenses): Program expense. Fundraising 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.) Answer is not complete. Stronger Ratio Ratios Program expense Fund-raising efficiency Days cash on hand Working capital (days) ABC 86 21% 0.112 28 days 28 x days XYZ 70.5% 0.111 31 days days

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