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-Profit Organizations1,
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SOLUTIONS MANUAL for Financial Management for Public
Health, and Not-for-Profit Organizations 7th Edition by
Steven Finkler, Thad Calabrese, (Complete 15 Chapters)

,Chapter 3: Additional Budgeting Concepts
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INTRODUCTION
Chapter 1 P
TO
FINANCIALM P




ANAGEMENT
Questions for Discussion P P




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1. Financial management is the subset of management that focuses on generating financial informa
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tionthat can improve decisions. The decisions are oriented toward achieving the various goals of th
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e organization while maintaining a satisfactory financial situation. Financial management encompass
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esthe 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 organization
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.

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3. In public service organizations, decisions are oriented toward achieving the various goals of the o
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rganization while maintaining a satisfactory financial situation. P P P P P P




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4. Accounting is a system for keeping track of the financial status of an organization and the financia
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l results of its activities. It has often been referred to as the language of business. The vocabulary us
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ed 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 accounting.
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Managerial accounting relates to generating any financial information that managers can use to im
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prove the future results of the organization. This includes techniques designed to generate any fina
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ncial data that might help managers make more effective decisions. Major aspects of managerialacc
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ounting relate to making financial plans for the organization, implementing those plans, and thenwo
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rking to ensure that the plans are achieved. Some examples of managerial accounting include prepa
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ring annual operating budgets, generating information for use in making major investment decision
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s, and providing the data needed to decide whether to buy or lease a major piece of equipment. Fin
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ancial accounting provides retrospective information. As events that have financial implications occ
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ur they are recorded by the financial accounting system. From time to time (usuallymonthly, quarterl
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y, or annually), the recorded data are summarized and reported to interested users.The users inclu
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de both internal managers and people outside the organization. Those outsiders include those who
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have lent or might lend money to the organization (creditors), those who might sell things to the org
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anization (called suppliers or vendors), and other interested parties. These interested parties may in
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clude those with a particular interest in public service organizations, such asregulators, legislators, a
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nd citizens. Financial reports provide information on the financial status of the organization at a spe
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, Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations1,
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cific point in time, as well as reporting the past results of the organization‘s operations (i.e., how well
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it has done from a financial viewpoint).
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, Chapter 3: Additional Budgeting Concepts
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1-
6. Finance focuses on the alternative sources and uses of the organization‘s financial resources. Obt
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aining funds when needed from appropriate sources and the deployment of resources within theor
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ganization fall under this heading. In addition, finance involves the financial markets (such as stock
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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 management pr
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ovides information for managers to use in making their decisions. It helps managers by providing in
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formation on the likely financial impact of each proposed alternative. It also provides information a
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bout financial stability, efficiency, and effectiveness.
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8. Clearly, we might expect some public service organizations that are proprietary, such as some ho
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spitals, to earn profits. But what about other public service organizations such as charities? Theysho
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uld make a profit as well. Profits provide a safety margin against unexpected costs, provide resourc
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es 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 P P


 Social insurance taxes P P


 Corporate income tax P P




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


 Federal government P


 Property taxes P


 Individual income taxes P P




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


 Medicare
 Medicaid
 Other government programs P P




Not-for-profit sector (see text) P P P


 Private payments for goods and services P P P P P


 Government payments for goods and services P P P P P


 Donations

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