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 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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ese, (Complete 15 Chapters)
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,Chapter 3: Additional Budgeting Concepts
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INTRODUCTION
Chapter 1 N
TO
FINANCIALM N




ANAGEMENT
Questions for Discussion N N




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1. Financial management is the subset of management that focuses on generating financial inform
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ationthat can improve decisions. The decisions are oriented toward achieving the various goals of
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the organization while maintaining a satisfactory financial situation. Financial management encomp
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assesthe 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 organizati
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on.

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3. In public service organizations, decisions are oriented toward achieving the various goals of the
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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 financ
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ial results of its activities. It has often been referred to as the language of business. The vocabular
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y 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 accounting
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. Managerial accounting relates to generating any financial information that managers can use to i
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mprove the future results of the organization. This includes techniques designed to generate any f
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inancial data that might help managers make more effective decisions. Major aspects of manageria
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laccounting relate to making financial plans for the organization, implementing those plans, and th
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enworking to ensure that the plans are achieved. Some examples of managerial accounting includ
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e preparing annual operating budgets, generating information for use in making major investment
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Ndecisions, and providing the data needed to decide whether to buy or lease a major piece of equi
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pment. Financial accounting provides retrospective information. As events that have financial imp
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lications occur they are recorded by the financial accounting system. From time to time (usuallymo
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nthly, quarterly, or annually), the recorded data are summarized and reported to interested users.
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The users include both internal managers and people outside the organization. Those outsiders in
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clude those who have lent or might lend money to the organization (creditors), those who might s
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ell things to the organization (called suppliers or vendors), and other interested parties. These inte
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rested parties may include those with a particular interest in public service organizations, such asre
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gulators, legislators, and citizens. Financial reports provide information on the financial status of t
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, Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations1,
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he organization at a specific point in time, as well as reporting the past results of the organization‘s
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operations (i.e., how well 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. O
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btaining funds when needed from appropriate sources and the deployment of resources within th
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eorganization fall under this heading. In addition, finance involves the financial markets (such as s
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tock 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
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provides information for managers to use in making their decisions. It helps managers by providin
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g information on the likely financial impact of each proposed alternative. It also provides informati
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on 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 h
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ospitals, to earn profits. But what about other public service organizations such as charities? They
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should make a profit as well. Profits provide a safety margin against unexpected costs, provide res
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ources 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 N N


 Social insurance taxes N N


 Corporate income tax N N




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


 Federal government N


 Property taxes N


 Individual income taxes N N




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


 Medicare
 Medicaid
 Other government programs N N




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


 Private payments for goods and services N N N N N


 Government payments for goods and services N N N N N


 Donations

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