Statement of Activities Revenues Program service revenue Contribution revenues Grant revenue Net gains on endowment investments Net assets released from restriction ABC Not-for-Profit Unrestricted $ 5,695,000 3,132,250 Donor-Restricted XYZ Not-for-Profit Unrestricted Donor- Restricted $ 763,500 97,500 $ 2,290,000 3,257,000 $ 1,043,500 18,000 Satisfaction of program restrictions 458,000 Total revenues 9,303,250 (458,000) 403,000 383,500 5,930,500 (383,500) 660,000 Expenses Education program expenses 10,338,250 1,710,000 Research program expense 1,374,000 2,272,000 Total program service 11,712,250 3,982,000 expenses Fund-raising 560,000 Administration 661,500 Total supporting service 1,221,500 expenses 12,933,750 -3,630,500 9,210,000 403,000 814,500 $ 5,579,500 $ 1,577,500 419,500 1,007,500 1,427,000 5,409,000 521,500 1,056,000 660,000 326,000 $ 986,000 Total expenses Increase in net assets Net assets, January 1 Net assets, December 31 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 Notes payable Noncurrent liabilities Total noncurrent liabilities Total liabilities $ 1,217,500 ABC Not-for-Profit $ 208,500 XYZ Not-for-Profit $ 362,500 269,500 101,000 32,500 152,500 447,500 192,000 958,000 808,000 176,000 87,500 2,636,500 3,231,500 6,044,000 $ 7,002,000 $ 23,500 23,500 1,799,500 1,887,000 $ 2,695,000 $ 131,500 131,500 181,500 181,500 205,000 131,500 Net Assets Unrestricted Donor restricted for purpose Donor restricted for endowment 5,579,500 217,500 1,000,000 Total net assets 6,797,000 1,577,500 986,000 2,563,500 0 Total liabilities and net assets $ 7,002,000 $ 2,695,000 Required: a. Calculate the following ratios (assume depreciation expense is $488,500 for both organizations and is allocated among program and supporting expenses): Program expense. Fund-raising efficiency. Days cash on hand. Working capital (expressed in days). b. For each ratio, which of the two organizations has the stronger ratio. Note: 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. Ratios ABC XYZ Stronger Ratio % % Program expense Fund-raising efficiency Working capital (days) days days Days cash on hand days days