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’s Manual for Financial Management for Public, Health, and Not-for-
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Profit Organizations1,
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SOLUTIONS MANUAL for Financial Management for Public He
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alth, 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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,Chapter 3: Additional Budgeting Concept
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INTRODUCTION
Chapter 1 #t
TO
FINANCIALM #t




ANAGEMENT
Questions for Discussion #t #t




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1. Financial management is the subset of management that focuses on generating financial infor
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mationthat can improve decisions. The decisions are oriented toward achieving the various goal
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s of the organization while maintaining a satisfactory financial situation. Financial management en
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compassesthe broad areas of accounting and finance.
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1-2. In proprietary, or for-
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profit, organizations, an underlying goal is to maximize the wealth of the owners of the organiza
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tion.

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3. In public service organizations, decisions are oriented toward achieving the various goals of t
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he organization while maintaining a satisfactory financial situation.
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4. Accounting is a system for keeping track of the financial status of an organization and the fin
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ancial results of its activities. It has often been referred to as the language of business. The voc
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abulary used by accounting is the language of nonbusiness organizations as well.
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5. Accounting is subdivided into two major areas: managerial accounting and financial accounti
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ng. Managerial accounting relates to generating any financial information that managers can us
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e to improve the future results of the organization. This includes techniques designed to genera
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te any financial data that might help managers make more effective decisions. Major aspects of
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managerialaccounting relate to making financial plans for the organization, implementing those pl
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ans, and thenworking to ensure that the plans are achieved. Some examples of managerial acco
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unting include preparing annual operating budgets, generating information for use in making m
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ajor investment decisions, and providing the data needed to decide whether to buy or lease a
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major piece of equipment. Financial accounting provides retrospective information. As events th
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at have financial implications occur they are recorded by the financial accounting system. From ti
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me to time (usuallymonthly, quarterly, or annually), the recorded data are summarized and repo
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rted to interested users.The users include both internal managers and people outside the organi
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zation. Those outsiders include those who have lent or might lend money to the organization (c
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reditors), those who might sell things to the organization (called suppliers or vendors), and othe
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r interested parties. These interested parties may include those with a particular interest in publi
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c service organizations, such asregulators, legislators, and citizens. Financial reports provide infor
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, Instructor’s Manual for Financial Management for Public, Health, and Not-for-
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mation
Profit on
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Organizations
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the past results of the organization‘s operations (i.e., how well it has done from a financial view
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point).

, Chapter 3: Additional Budgeting Concept
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6. Finance focuses on the alternative sources and uses of the organization‘s financial resources.
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Obtaining funds when needed from appropriate sources and the deployment of resources withi
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n theorganization fall under this heading. In addition, finance involves the financial markets (suc
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h as stock and bond markets) that provide a means to generating funds for organizations.
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7. Yes. Achieving the goals of the organization requires financial planning. Financial managemen
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t provides information for managers to use in making their decisions. It helps managers by prov
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iding information on the likely financial impact of each proposed alternative. It also provides inf
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ormation about financial stability, efficiency, and effectiveness.
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8. Clearly, we might expect some public service organizations that are proprietary, such as some
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hospitals, to earn profits. But what about other public service organizations such as charities? T
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heyshould make a profit as well. Profits provide a safety margin against unexpected costs, provi
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de resources to replace buildings and equipment, and to expand and improve services.
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1-9. Federal government (see text Figure 1-1)
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 Individual income taxes #t #t


 Social insurance taxes #t #t


 Corporate income tax #t #t




State and local government (see text Figure 1-4)
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 Sales and gross receipts tax #t #t #t #t


 Federal government #t


 Property taxes #t


 Individual income taxes #t #t




Health sector (see text Figure 1-6)
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 Private insurance #t


 Medicare
 Medicaid
 Other government programs #t #t




Not-for-profit sector (see text) #t #t #t


 Private payments for goods and services #t #t #t #t #t


 Government payments for goods and services #t #t #t #t #t


 Donations

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10. Federal government spending exceeded $6 trillion in 2020 and state and local government sp
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endingwas more than $3 trillion in 2018. In contrast, the GDP was $21 trillion in 2020. For more
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up to date information, examine the statistical tables of the most recent Economic Report of t
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he President, which is available online.
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