Stuvia.com - The Marketplace to Buy and Sell your Study
2q 2q 2q 2q 2q 2q 2q 2q 2q
Material
2q
RRRR
Solution Manual
2q
for Financial Management for Public Health, and Not-for-Profit
2q 2q 2q 2q 2q 2q 2q
2q Organizations 7th Edition by Finkler, Calabrese & Smith Verified
2q 2q 2q 2q 2q 2q 2q 2q
2q Chapters 1 - 15, Complete 2q 2q 2q 2q
, Stuvia.com - The Marketplace to Buy and Sell your Study 2q 2q 2q 2q 2q 2q 2q 2q 2q
Material
2q
Chapter 1: INTRODUCTION TO FINANCIAL MANAGEMENT 2q 2q 2q 2q 2q
Questions for Discussion 2q 2q
1-1. Financial management is the subset of management that focuses on generating financial information
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that can improve decisions. The decisions are oriented toward achieving the various goals of the
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organization while maintaining a satisfactory financial situation. Financial management encompasses the
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broad areas of accounting and finance.
2q 2q 2q 2q 2q 2q
1-2. In proprietary, or for-profit, organizations, an underlying goal is to maximize the wealth of the owners
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of the organization.
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1-3. 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.
2q 2q 2q 2q 2q 2q 2q
1-4. Accounting is a system for keeping track of the financial status of an organization and the financial
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
results of its activities. It has often been referred to as the language of business. The vocabulary used by
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
accounting is the language of nonbusiness organizations as well.
2q 2q 2q 2q 2q 2q 2q 2q 2q
1-5. 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 improve
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the future results of the organization. This includes techniques designed to generate any financial data that
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might help managers make more effective decisions. Major aspects of managerial accounting relate to
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making financial plans for the organization, implementing those plans, and then working to ensure that
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the plans are achieved. Some examples of managerial accounting include preparing annual operating
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budgets, generating information for use in making major investment decisions, and providing the data
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needed to decide whether to buy or lease a major piece of equipment. Financial accounting provides
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retrospective information. As events that have financial implications occur they are recorded by the
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financial accounting system. From time to time (usually monthly, quarterly, or annually), the recorded
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data are summarized and reported to interested users. The users include both internal managers and
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people outside the organization. Those outsiders include those who have lent or might lend money to the
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organization (creditors), those who might sell things to the organization (called suppliers or vendors), and
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other interested parties. These interested parties may include those with a particular interest in public
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service organizations, such as regulators, legislators, and citizens. Financial reports provide information
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on the financial status of the organization at a specific point in time, as well as reporting the past results of
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the organization‗s operations (i.e., how well it has done from a financial viewpoint).
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1-6. 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 within the
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organization fall under this heading. In addition, finance involves the financial markets (such as stock and
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1 |P a g e 2q 2q 2q 2q 2q
, Stuvia.com - The Marketplace to Buy and Sell your Study
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Material
2q
bond markets) that provide a means to generating funds for organizations.
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2 |P a g e
2q 2q 2q 2q 2q
, Stuvia.com - The Marketplace to Buy and Sell your Study 2q 2q 2q 2q 2q 2q 2q 2q 2q
Material
2q
1-7. 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 providing
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information on the likely financial impact of each proposed alternative. It also provides information about
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financial stability, efficiency, and effectiveness.
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1-8. 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? They should
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make a profit as well. Profits provide a safety margin against unexpected costs, provide resources to
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
replace buildings and equipment, and to expand and improve services.
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
1-9.Federal government (see text Figure 1-1)
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2q Individual income taxes 2q 2q
Social insurance taxes 2q 2q
Corporate income tax
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State and local government (see text Figure 1-4)
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2q Sales and gross receipts tax 2q 2q 2q 2q
Federal government 2q
2q Property taxes 2q
2q Individual income taxes 2q 2q
Health sector (see text Figure 1-6)
2q 2q 2q 2q 2q
2q Private insurance 2q
2q Medicare
Medicaid
Other government programs 2q 2q
Not-for-profit sector (see text) 2q 2q 2q
Private payments for goods and services 2q 2q 2q 2q 2q
2q Government payments forgoods and services 2q 2q 2q 2q 2q
3 |P a g e
2q 2q 2q 2q 2q
2q 2q 2q 2q 2q 2q 2q 2q 2q
Material
2q
RRRR
Solution Manual
2q
for Financial Management for Public Health, and Not-for-Profit
2q 2q 2q 2q 2q 2q 2q
2q Organizations 7th Edition by Finkler, Calabrese & Smith Verified
2q 2q 2q 2q 2q 2q 2q 2q
2q Chapters 1 - 15, Complete 2q 2q 2q 2q
, Stuvia.com - The Marketplace to Buy and Sell your Study 2q 2q 2q 2q 2q 2q 2q 2q 2q
Material
2q
Chapter 1: INTRODUCTION TO FINANCIAL MANAGEMENT 2q 2q 2q 2q 2q
Questions for Discussion 2q 2q
1-1. Financial management is the subset of management that focuses on generating financial information
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
that can improve decisions. The decisions are oriented toward achieving the various goals of the
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
organization while maintaining a satisfactory financial situation. Financial management encompasses the
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
broad areas of accounting and finance.
2q 2q 2q 2q 2q 2q
1-2. In proprietary, or for-profit, organizations, an underlying goal is to maximize the wealth of the owners
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
of the organization.
2q 2q 2q
1-3. In public service organizations, decisions are oriented toward achieving the various goals of the
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
organization while maintaining a satisfactory financial situation.
2q 2q 2q 2q 2q 2q 2q
1-4. Accounting is a system for keeping track of the financial status of an organization and the financial
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
results of its activities. It has often been referred to as the language of business. The vocabulary used by
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
accounting is the language of nonbusiness organizations as well.
2q 2q 2q 2q 2q 2q 2q 2q 2q
1-5. Accounting is subdivided into two major areas: managerial accounting and financial accounting.
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
Managerial accounting relates to generating any financial information that managers can use to improve
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
the future results of the organization. This includes techniques designed to generate any financial data that
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
might help managers make more effective decisions. Major aspects of managerial accounting relate to
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
making financial plans for the organization, implementing those plans, and then working to ensure that
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
the plans are achieved. Some examples of managerial accounting include preparing annual operating
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
budgets, generating information for use in making major investment decisions, and providing the data
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
needed to decide whether to buy or lease a major piece of equipment. Financial accounting provides
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
retrospective information. As events that have financial implications occur they are recorded by the
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
financial accounting system. From time to time (usually monthly, quarterly, or annually), the recorded
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
data are summarized and reported to interested users. The users include both internal managers and
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
people outside the organization. Those outsiders include those who have lent or might lend money to the
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
organization (creditors), those who might sell things to the organization (called suppliers or vendors), and
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
other interested parties. These interested parties may include those with a particular interest in public
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
service organizations, such as regulators, legislators, and citizens. Financial reports provide information
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
on the financial status of the organization at a specific point in time, as well as reporting the past results of
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
the organization‗s operations (i.e., how well it has done from a financial viewpoint).
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
1-6. Finance focuses on the alternative sources and uses of the organization‗s financial resources.
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
Obtaining funds when needed from appropriate sources and the deployment of resources within the
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
organization fall under this heading. In addition, finance involves the financial markets (such as stock and
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
1 |P a g e 2q 2q 2q 2q 2q
, Stuvia.com - The Marketplace to Buy and Sell your Study
2q 2q 2q 2q 2q 2q 2q 2q 2q
Material
2q
bond markets) that provide a means to generating funds for organizations.
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
2 |P a g e
2q 2q 2q 2q 2q
, Stuvia.com - The Marketplace to Buy and Sell your Study 2q 2q 2q 2q 2q 2q 2q 2q 2q
Material
2q
1-7. Yes. Achieving the goals of the organization requires financial planning. Financial management
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
provides information for managers to use in making their decisions. It helps managers by providing
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
information on the likely financial impact of each proposed alternative. It also provides information about
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
financial stability, efficiency, and effectiveness.
2q 2q 2q 2q 2q
1-8. Clearly, we might expect some public service organizations that are proprietary, such as some
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
hospitals, to earn profits. But what about other public service organizations such as charities? They should
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
make a profit as well. Profits provide a safety margin against unexpected costs, provide resources to
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
replace buildings and equipment, and to expand and improve services.
2q 2q 2q 2q 2q 2q 2q 2q 2q 2q
1-9.Federal government (see text Figure 1-1)
2q 2q 2q 2q 2q 2q
2q Individual income taxes 2q 2q
Social insurance taxes 2q 2q
Corporate income tax
2q 2q 2q
State and local government (see text Figure 1-4)
2q 2q 2q 2q 2q 2q 2q
2q Sales and gross receipts tax 2q 2q 2q 2q
Federal government 2q
2q Property taxes 2q
2q Individual income taxes 2q 2q
Health sector (see text Figure 1-6)
2q 2q 2q 2q 2q
2q Private insurance 2q
2q Medicare
Medicaid
Other government programs 2q 2q
Not-for-profit sector (see text) 2q 2q 2q
Private payments for goods and services 2q 2q 2q 2q 2q
2q Government payments forgoods and services 2q 2q 2q 2q 2q
3 |P a g e
2q 2q 2q 2q 2q
