Solution Manual for Financial Management for Public Health, and Not-for-Profit Organizations 7th Edition by Finkler, Calabrese & Smith Verified Chapters 1 - 15, Complete

Instructor’smManualmformFinancialmManagementmformPublic,mHealth,mandmNot-for-
ProfitmOrganizations1,


SOLUTIONS MANUAL for Financial Management for Pub
m m m m m m




lic Health, and Not-for-
m m m




Profit Organizations 7th Edition by Steven Finkler, Thad Ca
m m m m m m m m




labrese, (Complete 15 Chapters)
m m m

,Chapterm3:m Additionalm Budgetingm Conc 3-2
epts

INTRODUCTION
Chapter 1 m TO
FINANCIAL M
m m

ANAGEMENT
QuestionsmformDiscussion

1-
1.mFinancialmmanagementmismthemsubsetmofmmanagementmthatmfocusesmonmgeneratingmfinancial
minformationmthatmcanmimprovemdecisions.mThemdecisionsmaremorientedmtowardmachievingmthem
variousmgoalsmofmthemorganizationmwhilemmaintainingmamsatisfactorymfinancialmsituation.mFinanci
almmanagementmencompassesmthembroadmareasmofmaccountingmandmfinance.

1-2.mInmproprietary,mormfor-
profit,morganizations,manmunderlyingmgoalmismtommaximizemthemwealthmofmthemownersmofmthemo
rganization.

1-
3.mInmpublicmservicemorganizations,mdecisionsmaremorientedmtowardmachievingmthemvariousmgoal
smofmthemorganizationmwhilemmaintainingmamsatisfactorymfinancialmsituation.

1-
4.mAccountingmismamsystemmformkeepingmtrackmofmthemfinancialmstatusmofmanmorganizationmand
mthemfinancialmresultsmofmitsmactivities.mItmhasmoftenmbeenmreferredmtomasmthemlanguagemofmbus
iness.mThemvocabularymusedmbymaccountingmismthemlanguagemofmnonbusinessmorganizationsmasm
well.

1-
5.mAccountingmismsubdividedmintomtwommajormareas:mmanagerialmaccountingmandmfinancialmac
counting.mManagerialmaccountingmrelatesmtomgeneratingmanymfinancialminformationmthatmmanage
rsmcanmusemtomimprovemthemfuturemresultsmofmthemorganization.mThismincludesmtechniquesmdesi
gnedmtomgeneratemanymfinancialmdatamthatmmightmhelpmmanagersmmakemmoremeffectivemdecisio
ns.mMajormaspectsmofmmanagerialmaccountingmrelatemtommakingmfinancialmplansmformthemorgani
zation,mimplementingmthosemplans,mandmthenmworkingmtomensuremthatmthemplansmaremachieved.m
Somemexamplesmofmmanagerialmaccountingmincludempreparingmannualmoperatingmbudgets,mgener
atingminformationmformuseminmmakingmmajorminvestmentmdecisions,mandmprovidingmthemdatamne
ededmtomdecidemwhethermtombuymormleasemammajormpiecemofmequipment.mFinancialmaccountingm
providesmretrospectiveminformation.mAsmeventsmthatmhavemfinancialmimplicationsmoccurmtheymar
emrecordedmbymthemfinancialmaccountingmsystem.m Frommtimemtomtimem(usuallymmonthly,mquart
erly,mormannually),mthemrecordedmdatamaremsummarizedmandmreportedmtominterestedmusers.mThem
usersmincludembothminternalmmanagersmandmpeoplemoutsidemthemorganization.mThosemoutsidersmi
ncludemthosemwhomhavemlentmormmightmlendmmoneymtomthemorganizationm(creditors),mthosemwh
ommightmsellmthingsmtomthemorganizationm(calledmsuppliersmormvendors),mandmotherminterestedmp
arties.mTheseminterestedmpartiesmmaymincludemthosemwithmamparticularminterestminmpublicmservic
emorganizations,msuchmasmregulators,mlegislators,mandmcitizens.mFinancialmreportsmprovideminfor
mationmonmthemfinancialmstatusmofmthemorganizationmatmamspecificmpointminmtime,masmwellmasmr

, Instructor’smManualmformFinancialmManagementmformPublic,mHealth,mandmNot-for-
eporting thempastmresults
ProfitmmOrganizations 1, mofmthemorganization‘smoperationsm(i.e.,mhowmwellmitmhasmdonemfromm
amfinancialmviewpoint).

, Chapterm3:m Additionalm Budgetingm Conc 3-4
epts

1-
6.mFinancemfocusesmonmthemalternativemsourcesmandmusesmofmthemorganization‘smfinancialmreso
urces.mObtainingmfundsmwhenmneededmfrommappropriatemsourcesmandmthemdeploymentmofmreso
urcesmwithinmthemorganizationmfallmundermthismheading.mInmaddition,mfinanceminvolvesmthemfina
ncialmmarketsm(suchmasmstockmandmbondmmarkets)mthatmprovidemammeansmtomgeneratingmfunds
mformorganizations.


1-
7.mYes.mAchievingmthemgoalsmofmthemorganizationmrequiresmfinancialmplanning.mFinancialmmana
gementmprovidesminformationmformmanagersmtomuseminmmakingmtheirmdecisions.mItmhelpsmman
agersmbymprovidingminformationmonmthemlikelymfinancialmimpactmofmeachmproposedmalternative.
mItmalsomprovidesminformationmaboutmfinancialmstability,mefficiency,mandmeffectiveness.


1-
8.mClearly,mwemmightmexpectmsomempublicmservicemorganizationsmthatmaremproprietary,msuchmas
msomemhospitals,mtomearnmprofits.mButmwhatmaboutmothermpublicmservicemorganizationsmsuchmas
mcharities?
mTheymshouldmmakemamprofitmasmwell.mProfitsmprovidemamsafetymmarginmagainstmunexpectedmc
osts,mprovidemresourcesmtomreplacembuildingsmandmequipment,mandmtomexpandmandmimprovemse
rvices.

1-9.m Federalmgovernmentm(seemtextmFigurem1-1)
 Individualmincomemtaxes
 Socialminsurancemtaxes
 Corporatemincomemtax

Statemandmlocalmgovernmentm(seemtextmFigurem1-4)
 Salesmandmgrossmreceiptsmtax
 Federalmgovernment
 Propertymtaxes
 Individualmincomemtaxes

Healthmsectorm(seemtextmFigurem1-6)
 Privateminsurance
 Medicare
 Medicaid
 Othermgovernmentmprograms

Not-for-profitm sectorm(seemtext)
 Privatempaymentsmformgoodsmandmservices
 Governmentmpaymentsmformgoodsmandmservices
 Donations

1-
10.mFederalmgovernmentmspendingmexceededm$6mtrillionminm2020mandmstatemandmlocalmgovern
mentmspendingmwasmmoremthanm$3mtrillionminm2018.mInmcontrast,mthemGDPmwasm$21mtrillionmi
nm2020.mFormmoremupmtomdateminformation,mexaminemthemstatisticalmtablesmofmthemmostmrecent
mEconomicmReportmofmthemPresident,mwhichmismavailablemonline.