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 $5,655,000 3,363,100 $ 2,187,700 3,111,400 $ 744,800 95,300 $ 820,900 17,700 455, 200 9,491,000 (455,200) 384,900 366,500 5,665,600 (366,500) 454,400 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 5,681,800 1,326,000 7,007, 800 465,300 710,000 1,175,300 8,183,100 1,307,900 4,268,000 $5,575,900 1,523,700 2,204,900 3,728,600 362,000 1,233,000 1,595,000 5,323,600 342,000 831,000 $1,173,000 384,900 738,100 $1,123,000 454,400 224,400 $ 678,800 ABC Not-for-Profit XYZ Not-for-Profit $ $ 74,000 187,000 22,900 171,400 455,300 181,700 70,300 106,500 62,900 421,400 525,000 2,660,000 2,384,000 5,569,000 $6,024,300 2,028,000 2,028,000 $ 2,449,400 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 23,000 123,400 123, 400 178,500 178,500 201,500 123,400 5, 675,000 147,800 1,401,300 924,700 5,822,800 $6,024,300 2,326,000 $2,449,400 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