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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								XYZ Not-for-Profit
Statement of Activities	Unrestricted				Temporarily Restricted				Unrestricted				Temporarily Restricted
Revenues
Program service revenue	$	5,655,000							$	2,187,700
Contribution revenues		3,363,100			$	744,800				3,111,400
Grant revenue						95,300							$	820,900
Net gains on endowment investments		17,700
Net assets released from restriction
Satisfaction of program restrictions		455,200				(455,200	)			366,500				(366,500	)
Total revenues		9,491,000				384,900				5,665,600				454,400
Expenses
Education program expenses		5,681,800								1,523,700
Research program expense		1,326,000								2,204,900
Total program service expenses		7,007,800								3,728,600
Fund-raising		465,300								362,000
Administration		710,000								1,233,000
Total supporting service expenses		1,175,300								1,595,000
Total expenses		8,183,100								5,323,600
Increase in net assets		1,307,900				384,900				342,000				454,400
Net assets January 1		4,268,000				738,100				831,000				224,400
Net assets December 31	$	5,575,900			$	1,123,000			$	1,173,000			$	678,800

STATEMENT OF NET ASSETS	ABC Not-for-Profit						XYZ Not-for-Profit
Current assets
Cash		$	74,000					$	181,700
Short-term investments			187,000						70,300
Supplies inventories			22,900						106,500
Receivables			171,400						62,900
Total current assets			455,300						421,400
Noncurrent assets
Pledges receivable			525,000
Long-term investments			2,660,000
Land, buildings, and equipment (net)			2,384,000						2,028,000
Total noncurrent assets			5,569,000						2,028,000
Total assets		$	6,024,300					$	2,449,400
Current liabilities
Accounts payable		$	23,000					$	123,400
Total current liabilities			23,000						123,400
Noncurrent liabilities
Notes payable			178,500
Total noncurrent liabilities			178,500
Total liabilities			201,500						123,400
Net Assets
Unrestricted			5,675,000						1,401,300
Temporarily restricted			147,800						924,700
Permanently restricted			0						0
Total net assets			5,822,800						2,326,000
Total liabilities and net assets		$	6,024,300					$	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.)

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