Presented below are financial statements (except cash flows) for two not-for-profit organizations. Neither organization has any permanently restricted net assets.

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.

ABC Not-for-Profit XYZ Not-for-Profit Temporarily Restricted Temporarily Restricted Statement of Activities Revenues Unrestricted Unrestricted Program service revenue Contribution revenues Grant revenue Net gains on endowment investments Net assets released from restriction $5,655,000 3,363,100 $2,187,700 3,111,400 $ 744,800 95,300 820,900 17,700 Satisfaction of program restrictions 455,200_455,200) 384,900 66,500366,500) Total revenues 9,491,000 5,665,600 454,400 Expenses Education program expenses Research program expense 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 5,323,600 342,000 738,10063990 Total program service expenses Fund-raising Administration Total supporting service expenses Total expenses Increase in net assets Net assets January 1 Net assets December 31 384,900 454,400 831,00000 224,400 $1,123,000 $1,173,000 $ 678,800 ABC Not-for-Profit XYZ Not-for-Profit STATEMENT OF NET ASSETS Current assets Cash Short-term investments Supplies inventories Receivables $ 74,000 187,000 22,900 171,400 455, 300 $ 181,700 70,300 106,500 62,900 421,400 Total current assets Noncurrent assets Pledges receivable Long-term investments Land, buildings, and equipment (net) 525,000 2,660,000 2,384,000 5,569,000 $6,024, 300 2,028,000 2,028,000 $2,449,400 Total noncurrent assets Total assets Current liabilities S 23,000 23,000 $ 123,400 123,400 Accounts payable Total current liabilities Noncurrent liabilities Notes payable Total noncurrent liabilities Total liabilities 178,500 178,500 201,500 123,400 Net Assets Unrestricted Temporarily restricted Permanently restricted 5,675,000 147,800 1,401,300 924,700 Total net assets 5,822,800 $6,024,300 2,326,000 $2,449,400 Total liabilities and net assets