solution manual for financial management for public health and not for profit organizations 7thedition by steven finkler thad calabrese

Instructor’smManualmformFinancialm Managementm formPublic,mHealth,mandmNot-for-
ProfitmOrganizations1,


SOLUTIONS MANUAL for Financial Management for Public H
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ealth, and Not-for-
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Profit Organizations 7th Edition by Steven Finkler, Thad Calab
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rese, (Complete 15 Chapters)
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,Chapterm3:m Additionalm Budgetingm Concep 3-2
ts

INTRODUCTION
Chapter 1 m
TO
FINANCIALM m



ANAGEMENT
Questions for Discussion
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1-
1.mFinancialmmanagementmismthemsubsetmofmmanagementmthatmfocusesmonmgeneratingmfinancialminf
ormationmthatmcanmimprovemdecisions.mThemdecisionsmaremorientedmtowardmachievingmthemvariousm
goalsmofmthemorganizationmwhilemmaintainingmamsatisfactorymfinancialmsituation.mFinancialmmanagem
entmencompassesmthembroadmareasmofmaccountingmandmfinance.

1-2.mInmproprietary,mormfor-
profit,morganizations,manmunderlyingmgoalmismtommaximizemthemwealthmofmthemownersmofmthemorgani
zation.

1-
3.mInmpublicmservicemorganizations,mdecisionsmaremorientedmtowardmachievingmthemvariousmgoalsmof
mthemorganizationmwhilem maintainingm amsatisfactorymfinancialmsituation.




1-
4.mAccountingmismamsystemmformkeepingmtrackmofmthemfinancialmstatusmofmanmorganizationmandmthemf
inancialmresultsmofmitsmactivities.mItmhasmoftenmbeenmreferredmtomasmthemlanguagemofmbusiness.mThem
vocabularymusedmbymaccountingmismthemlanguagemofmnonbusinessmorganizationsmasmwell.

1-
5.mAccountingmismsubdividedmintomtwommajormareas:mmanagerialmaccountingmandmfinancialmaccount
ing.mManagerialmaccountingmrelatesmtomgeneratingmanymfinancialminformationmthatmmanagersmcanm
usemtomimprovemthemfuturemresultsmofmthemorganization.mThismincludesmtechniquesmdesignedmtomge
neratemanymfinancialmdatamthatmmightmhelpmmanagersmmakemmoremeffectivemdecisions.mMajormaspe
ctsmofmmanagerialmaccountingmrelatemtommakingmfinancialmplansmformthemorganization,mimplementing
mthosemplans,mandmthenm workingmtomensuremthatmthemplansmaremachieved.mSomemexamplesmofmmana
gerialmaccountingmincludempreparingmannualmoperatingmbudgets,mgeneratingminformationmformusemi
nmmakingmmajorminvestmentmdecisions,mandmprovidingmthemdatamneededmtomdecidemwhethermtombu
ymormleasemammajormpiecemofmequipment.mFinancialmaccountingmprovidesmretrospectiveminformation
.mAsmeventsmthatmhavemfinancialmimplicationsmoccurmtheymaremrecordedmbymthemfinancialmaccountingm
system.mFrommtimemtomtimem(usuallymmonthly,mquarterly,mormannually),mthemrecordedmdatamaremsum
marizedmandmreportedmtominterestedmusers.mThemusersmincludembothminternalmmanagersmandmpeopl
emoutsidemthemorganization.mThosemoutsidersmincludemthosemwhomhavemlentmormmightmlendmmoneym
tomthemorganizationm(creditors),mthosemwhommightmsellmthingsmtomthemorganizationm(calledmsupplier
smormvendors),mandmotherminterestedmparties.mTheseminterestedmpartiesmmaymincludemthosemwithmam
particularminterestminmpublicmservicemorganizations,msuchmasmregulators,mlegislators,mandmcitizens.mFi

, Instructor’smManualmformFinancialm Managementm formPublic,mHealth,mandmNot-for-
nancial
Profitmmreportsmprovide
Organizations1, minformationmonmthemfinancialmstatusmofmthemorganizationmatmamspecificmpoi
ntminmtime,masmwellmasmreportingmthempastmresultsmofmthemorganization‘smoperationsm(i.e.,mhowmwellm
itm hasmdonemfrommamfinancialmviewpoint).

, Chapterm3:m Additionalm Budgetingm Concep 3-4
ts

1-
6.mFinancemfocusesmonmthemalternativemsourcesmandmusesmofmthemorganization‘smfinancialmresource
s.mObtainingmfundsmwhenmneededmfrommappropriatemsourcesmandmthemdeploymentmofmresourcesmw
ithinmthemorganizationmfallmundermthismheading.mInmaddition,mfinanceminvolvesmthemfinancialmmarket
sm(suchmasmstockmandmbondmmarkets)mthatm providemammeansmtom generatingmfundsmformorganization
s.

1-
7.mYes.mAchievingmthemgoalsmofmthemorganizationmrequiresmfinancialmplanning.mFinancialmmanageme
ntmprovidesminformationmformmanagersmtomuseminmmakingmtheirmdecisions.mItmhelpsmmanagersmbymp
rovidingminformationmonmthemlikelymfinancialmimpactmofmeachmproposedmalternative.mItmalsomprovide
sminformationmaboutmfinancialmstability,mefficiency,mandmeffectiveness.

1-
8.mClearly,mwemmightmexpectmsomempublicmservicemorganizationsmthatmaremproprietary,msuchmasmso
memhospitals,mtomearnmprofits.mButmwhatmaboutmothermpublicmservicemorganizationsmsuchmasmchariti
es?mTheymshouldmmakemamprofitmasmwell.mProfitsmprovidemamsafetymmarginmagainstmunexpectedmcost
s,mprovidemresourcesmtom replacembuildingsmandmequipment,mandmtomexpandmandmimprovemservices.

1-9.m Federalmgovernmentm (seemtextm Figurem1-1)
 Individualmincomemtaxes
 Socialminsurancemtaxes
 Corporatemincomemtax

Statemandmlocalmgovernmentm (seemtextm Figurem1-4)
 Salesmandmgrossmreceiptsmtax
 Federalmgovernment
 Propertymtaxes
 Individualmincomemtaxes

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

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

1-
10.mFederalmgovernmentmspendingmexceededm$6mtrillionminm2020mandmstatemandmlocalmgovernmentm
spendingmwasmmoremthanm$3mtrillionminm2018.mInmcontrast,mthemGDPmwasm$21mtrillionminm2020.mForm
moremupmtomdateminformation,mexaminemthemstatisticalmtablesmofmthemmostmrecentmEconomicmRepo