Solution Manual for Financial Management for Public, Health, and Not-for-Profit Organizations 8th Edition Finkler – Complete Answers (Chapters 1-15)

SOLUTION MANUAL FOR
V V




FinancialVManagementVforVPublic,VHealth,VandVNot-for-
ProfitVOrganizationsVEighthVEditionVbyVStevenVA.VFinkler




FULL TEST BANK!!!
V V

,ChapterV3:VAdditionalVBudgetingVConcepts 3-2

INTRODUCTION
Chapter 1 V TO
VFINANCIA

L
MANAGEMENT
QuestionsVforVDiscussion

1-
1.V FinancialVmanagementVisVtheVsubsetVofVmanagementVthatVfocusesVonVgeneratingVfinancialVi
nformationVthatVcanVimproveVdecisions.VTheVdecisionsVareVorientedVtowardVachievingVtheVvari
ousVgoalsVofVtheVorganizationVwhileVmaintainingVaVsatisfactoryVfinancialVsituation.VFinancialVma
nagementVencompassesVtheVbroadVareasVofVaccountingVandVfinance.

1-2.VInVproprietary,VorVfor-
profit,Vorganizations,VanVunderlyingVgoalVisVtoVmaximizeVtheVwealthVofVtheVownersVofVtheVor
ganization.

1-
3.VInVpublicVserviceVorganizations,VdecisionsVareVorientedVtowardVachievingVtheVvariousVgoals
VofVtheVorganizationVwhileVmaintainingVaVsatisfactoryVfinancialVsituation.


1-
4.V AccountingVisVaVsystemVforVkeepingVtrackVofVtheVfinancialVstatusVofVanVorganizationVandV
theVfinancialVresultsVofVitsVactivities.VItVhasVoftenVbeenVreferredVtoVasVtheVlanguageVofVbusine
ss.VTheVvocabularyVusedVbyVaccountingVisVtheVlanguageVofVnonbusinessVorganizationsVasVwell
.

1-
5.VAccountingVisVsubdividedVintoVtwoVmajorVareas:VmanagerialVaccountingVandVfinancialVacco
unting.VManagerialVaccountingVrelatesVtoVgeneratingVanyVfinancialVinformationVthatVmanagersV
canVuseVtoVimproveVtheVfutureVresultsVofVtheVorganization.VThisVincludesVtechniquesVdesigned
VtoVgenerateVanyVfinancialVdataVthatVmightVhelpVmanagersVmakeVmoreVeffectiveVdecisions.VMa
jorVaspectsVofVmanagerialVaccountingVrelateVtoVmakingVfinancialVplansVforVtheVorganization,Vim
plementingVthoseVplans,VandVthenVworkingVtoVensureVthatVtheVplansVareVachieved.VSomeVexam
plesVofVmanagerialVaccountingVincludeVpreparingVannualVoperatingVbudgets,VgeneratingVinform
ationVforVuseVinVmakingVmajorVinvestmentVdecisions,VandVprovidingVtheVdataVneededVtoVdecid
eVwhetherVtoVbuyVorVleaseVaVmajorVpieceVofVequipment.V FinancialVaccountingVprovidesVretros
pectiveVinformation.VAsVeventsVthatVhaveVfinancialVimplicationsVoccurVtheyVareVrecordedVbyVt
heVfinancialVaccountingVsystem.V FromVtimeVtoVtimeV(usuallyVmonthly,Vquarterly,VorVannually),
VtheVrecordedVdataVareVsummarizedVandVreportedVtoVinterestedVusers.VTheVusersVincludeVbothV
internalVmanagersVandVpeopleVoutsideVtheVorganization.VThoseVoutsidersVincludeVthoseVwhoVh
aveVlentVorVmightVlendVmoneyVtoVtheVorganizationV(creditors),VthoseVwhoVmightVsellVthingsVt
oVtheVorganizationV(calledVsuppliersVorVvendors),VandVotherVinterestedVparties.VTheseVintereste
dVpartiesVmayVincludeVthoseVwithVaVparticularVinterestVinVpublicVserviceVorganizations,VsuchVas
Vregulators,Vlegislators,VandVcitizens.VFinancialVreportsVprovideVinformationVonVtheVfinancialVst

,atusVofVtheVorganizationVatVaVspecificVpointVinVtime,VasVwellVasVreportingVtheVpastVresultsVofV
theVorganization‘sVoperationsV(i.e.,VhowVwellVitVhasVdoneVfromVaVfinancialVviewpoint).

, 1-
6.VFinanceVfocusesVonVtheValternativeVsourcesVandVusesVofVtheVorganization‘sVfinancialVresour
ces.VObtainingVfundsVwhenVneededVfromVappropriateVsourcesVandVtheVdeploymentVofVresource
sVwithinVtheVorganizationVfallVunderVthisVheading.VInVaddition,VfinanceVinvolvesVtheVfinancial
VmarketsV(suchVasVstockVandVbondVmarkets)VthatVprovideVaVmeansVtoVgeneratingVfundsVforVor
ganizations.

1-
7.VYes.VAchievingVtheVgoalsVofVtheVorganizationVrequiresVfinancialVplanning.VFinancialVmanag
ementVprovidesVinformationVforVmanagersVtoVuseVinVmakingVtheirVdecisions.VItVhelpsVmanag
ersVbyVprovidingVinformationVonVtheVlikelyVfinancialVimpactVofVeachVproposedValternative.VItV
alsoVprovidesVinformationVaboutVfinancialVstability,Vefficiency,VandVeffectiveness.

1-
8.VClearly,VweVmightVexpectVsomeVpublicVserviceVorganizationsVthatVareVproprietary,VsuchVasV
someVhospitals,VtoVearnVprofits.VButVwhatVaboutVotherVpublicVserviceVorganizationsVsuchVasVc
harities?VTheyVshouldVmakeVaVprofitVasVwell.VProfitsVprovideVaVsafetyVmarginVagainstVunexpe
ctedVcosts,VprovideVresourcesVtoVreplaceVbuildingsVandVequipment,VandVtoVexpandVandVimprov
eVservices.

1-9.V FederalVgovernmentV(seeVtextVFigureV1-1)
◼ IndividualVincomeVtaxes
◼ SocialVinsuranceVtaxes
◼ CorporateVincomeVtax

StateVandVlocalVgovernmentV(seeVtextVFigureV1-4)
◼ SalesVandVgrossVreceiptsVtax
◼ FederalVgovernment
◼ PropertyVtaxes
◼ IndividualVincomeVtaxes

HealthVsectorV(seeVtextVFigureV1-6)
◼ PrivateVinsurance
◼ Medicare
◼ Medicaid
◼ OtherVgovernmentVprograms

Not-for-profitVsectorV(seeVtext)
◼ PrivateVpaymentsVforVgoodsVandVservices
◼ GovernmentVpaymentsVforVgoodsVandVservices
◼ Donations

1-
10.VFederalVgovernmentVspendingVexceededV$6VtrillionVinV2020VandVstateVandVlocalVgovernme
ntVspendingVwasVmoreVthanV$3VtrillionVinV2018.V InVcontrast,VtheVGDPVwasV$21VtrillionVinV2
020.V ForVmoreVupVtoVdateVinformation,VexamineVtheVstatisticalVtablesVofVtheVmostVrecentVEco
nomicVReportVofVtheVPresident,VwhichVisVavailableVonline.