Solution manual for financial management for public health and not for profit organizations 7th edition by steven finkler t...,

Instructor’suManualuforuFinancialuManagementuforuPublic,uHealth,uanduNot-for-ProfituOrganizations1,



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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,Chapteru3:u Additionalu Budgetingu Concepts 3-2


INTRODUCTION
Chapter 1 u
TO
FINANCIALM u



ANAGEMENT
Questions for Discussion
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1-
1.uFinancialumanagementuisutheusubsetuofumanagementuthatufocusesuonugeneratingufinancialuinfor
mationuthatucanuimproveudecisions.uTheudecisionsuareuorientedutowarduachievingutheuvariousugoalsu
ofutheuorganizationuwhileumaintaininguausatisfactoryufinancialusituation.uFinancialumanagementuenco
mpassesutheubroaduareasuofuaccountinguandufinance.

1-2.uInuproprietary,uorufor-
profit,uorganizations,uanuunderlyingugoaluisutoumaximizeutheuwealthuofutheuownersuofutheuorganizati
on.

1-
3.uInupublicuserviceuorganizations,udecisionsuareuorientedutowarduachievingutheuvariousugoalsuofuthe
uorganizationuwhileu maintaininguausatisfactoryufinancialusituation.




1-
4.uAccountinguisuausystemuforukeepingutrackuofutheufinancialustatusuofuanuorganizationuandutheufinan
cialuresultsuofuitsuactivities.uItuhasuoftenubeenureferredutouasutheulanguageuofubusiness.uTheuvocabula
ryuusedubyuaccountinguisutheulanguageuofunonbusinessuorganizationsuasuwell.

1-
5.uAccountinguisusubdivideduintoutwoumajoruareas:umanagerialuaccountinguandufinancialuaccounting
.uManagerialuaccountingurelatesutougeneratinguanyufinancialuinformationuthatumanagersucanuuseutoui
mproveutheufutureuresultsuofutheuorganization.uThisuincludesutechniquesudesignedutougenerateuanyuf
inancialudatauthatumightuhelpumanagersumakeumoreueffectiveudecisions.uMajoruaspectsuofumanageria
luaccountingurelateutoumakingufinancialuplansuforutheuorganization,uimplementinguthoseuplans,uanduth
enuworkingutouensureuthatutheuplansuareuachieved.uSomeuexamplesuofumanagerialuaccountinguinclud
eupreparinguannualuoperatingubudgets,ugeneratinguinformationuforuuseuinumakingumajoruinvestment
udecisions,uanduprovidingutheudatauneededutoudecideuwhetherutoubuyuoruleaseuaumajorupieceuofuequi


pment.uFinancialuaccountinguprovidesuretrospectiveuinformation.uAsueventsuthatuhaveufinancialuimp
licationsuoccurutheyuareurecordedubyutheufinancialuaccountingusystem.uFromutimeutoutimeu(usuallyumo
nthly,uquarterly,uoruannually),utheurecordedudatauareusummarizeduandureportedutouinteresteduusers.u
Theuusersuincludeubothuinternalumanagersuandupeopleuoutsideutheuorganization.uThoseuoutsidersuin
cludeuthoseuwhouhaveulentuorumightulendumoneyutoutheuorganizationu(creditors),uthoseuwhoumightus
elluthingsutoutheuorganizationu(calledusuppliersuoruvendors),uanduotheruinteresteduparties.uTheseuinte
restedupartiesumayuincludeuthoseuwithuauparticularuinterestuinupublicuserviceuorganizations,usuchuasure
gulators,ulegislators,uanducitizens.uFinancialureportsuprovideuinformationuonutheufinancialustatusuofut

, Instructor’suManualuforuFinancialuManagementuforuPublic,uHealth,uanduNot-for-ProfituOrganizations1,
heuorganizationuatuauspecificupointuinutime,uasuwelluasureportingutheupasturesultsuofutheuorganization‘s
uoperationsu(i.e.,uhowuwelluitu hasudoneufromuau financialuviewpoint).

, Chapteru3:u Additionalu Budgetingu Concepts 3-4


1-
6.uFinanceufocusesuonutheualternativeusourcesuanduusesuofutheuorganization‘sufinancialuresources.uO
btainingufundsuwhenuneededufromuappropriateusourcesuandutheudeploymentuofuresourcesuwithinuth
euorganizationufalluunderuthisuheading.uInuaddition,ufinanceuinvolvesutheufinancialumarketsu(suchuasus
tockuandubondumarkets)uthatu provideuaumeansutou generatingufundsuforuorganizations.

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7.uYes.uAchievingutheugoalsuofutheuorganizationurequiresufinancialuplanning.uFinancialumanagementu
providesuinformationuforumanagersutouuseuinumakingutheirudecisions.uItuhelpsumanagersubyuprovidi
nguinformationuonutheulikelyufinancialuimpactuofueachuproposedualternative.uItualsouprovidesuinforma
tionuaboutufinancialustability,uefficiency,uandueffectiveness.

1-
8.uClearly,uweumightuexpectusomeupublicuserviceuorganizationsuthatuareuproprietary,usuchuasusomeuh
ospitals,utouearnuprofits.uButuwhatuaboutuotherupublicuserviceuorganizationsusuchuasucharities?uTheyu
shouldumakeuauprofituasuwell.uProfitsuprovideuausafetyumarginuagainstuunexpecteducosts,uprovideures
ourcesutou replaceubuildingsuanduequipment,uandutouexpanduanduimproveuservices.

1-9.u Federalugovernmentu(seeutextuFigureu1-1)
 Individualuincomeutaxes
 Socialuinsuranceutaxes
 Corporateuincomeutax

Stateuandulocalugovernmentu(seeutextuFigureu1-4)
 Salesuandugrossureceiptsutax
 Federalugovernment
 Propertyutaxes
 Individualuincomeutaxes

Healthusectoru(seeutextuFigureu1-6)
 Privateuinsurance
 Medicare
 Medicaid
 Otherugovernmentuprograms

Not-for-profitu sectoru(seeutext)
 Privateupaymentsuforugoodsuanduservices
 Governmentupaymentsuforugoodsuanduservices
 Donations

1-
10.uFederalugovernmentuspendinguexceededu$6utrillionuinu2020uandustateuandulocalugovernmentu spe
ndinguwasumoreuthanu$3utrillionuinu2018.uInucontrast,utheuGDPuwasu$21utrillionuinu2020.uForumoreuupu
toudateuinformation,uexamineutheustatisticalutablesuofutheumosturecentuEconomicuReportuofutheuPre
sident,uwhichuisuavailableuonline.