The data below pertaining to two not-for-profit hospices were taken from GuideStar, an online database (www.guidestar.org) that provides information about not-for-profit organizations. Names and dates have been changed. The forms 990 that are included on the website indicate that Pleasant Valley and Ancient Falls had fund-raising expenses of $38,327 and $11,075, respectively. Because the data were taken from an Internal Revenue Service form, the statements are not in the format required by GAAP (e.g., they do not report net assets by degree of restrictiveness). 1. Which of the two is the more likely to be able to satisfy its current liabilities as measured by the quick ratio? Include only cash and receivables. 2. Which has the greater financial resources as measured by the ratio of total expenses to net assets (excluding property, plant, and equipment)? 3. Which spends the greater percentage of its revenues on fund-raising? 4. Which directs a greater portion of its revenues to program services? 5. Based on this limited amount of information, which of the two, in your opinion, is the more fiscally sound? Statement of Operations for the Year Ending December 31, 20XX Revenues Contributions Government grants Program services Investments Other Expenses Program services Administration Hospice Pleasant Valley Hospice Ancient Falls $ 841,162 94,830 1,555,450 $ 704,529 2,331,263 3,455 146,318 2,187 $2,497,084 $3,182,110 $1,881,381 $2,521,516 444,853 38,227 Other Total expenses Excess of revenues over expenses $2,364,461 $ 132,623 403,425 74,891 $2,999,832 $ 182,278 Statement of Financial Position as of December 31, 20XX Hospice Pleasant Valley Hospice Ancient Falls - - - - - - - - - - - - - Assets Cash and equivalent Accounts receivable Pledges and grants receivable Inventories for sale or use Investments/securities Property, plant, and equipment Other Total assets Liabilities Accounts payable Noncurrent loans and notes Other noncurrent obligations Total liabilities Net assets $ 215,999 141,570 70,135 $ 441,229 307,252 6,331 14,250 13,063 2,417,152 269,298 2,656,105 1,295 $ 711,360 $ 165,809 161,556 5,319 $ 332,684 $ 378,676 78,801 $5,921,120 $ 183,483 $ 183,483 $5,737,637