solution manual for financial management for public health and not for profit organizations 7th edition by steven finkler thad_calabrese

Instructor’sQManualQforQFinancialQManagementQforQPublic,QHealth,QandQNot-for-
ProfitQOrganizations1,


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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rese, (Complete 15 Chapters)
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,ChapterQ3:Q AdditionalQ BudgetingQ Concept 3-2
s

INTRODUCTION
Chapter 1 Q
TO
FINANCIALM Q



ANAGEMENT
Questions for Discussion
Q Q




1-
1.QFinancialQmanagementQisQtheQsubsetQofQmanagementQthatQfocusesQonQgeneratingQfinancialQinfo
rmationQthatQcanQimproveQdecisions.QTheQdecisionsQareQorientedQtowardQachievingQtheQvariousQgoa
lsQofQtheQorganizationQwhileQmaintainingQaQsatisfactoryQfinancialQsituation.QFinancialQmanagementQe
ncompassesQtheQbroadQareasQofQaccountingQandQfinance.

1-2.QInQproprietary,QorQfor-
profit,Qorganizations,QanQunderlyingQgoalQisQtoQmaximizeQtheQwealthQofQtheQownersQofQtheQorganiza
tion.

1-
3.QInQpublicQserviceQorganizations,QdecisionsQareQorientedQtowardQachievingQtheQvariousQgoalsQofQt
heQorganizationQwhileQmaintainingQaQsatisfactoryQfinancialQsituation.

1-
4.QAccountingQisQaQsystemQforQkeepingQtrackQofQtheQfinancialQstatusQofQanQorganizationQandQtheQfin
ancialQresultsQofQitsQactivities.QItQhasQoftenQbeenQreferredQtoQasQtheQlanguageQofQbusiness.QTheQvoc
abularyQusedQbyQaccountingQisQtheQlanguageQofQnonbusinessQorganizationsQasQwell.

1-
5.QAccountingQisQsubdividedQintoQtwoQmajorQareas:QmanagerialQaccountingQandQfinancialQaccounti
ng.QManagerialQaccountingQrelatesQtoQgeneratingQanyQfinancialQinformationQthatQmanagersQcanQus
eQtoQimproveQtheQfutureQresultsQofQtheQorganization.QThisQincludesQtechniquesQdesignedQtoQgenera
teQanyQfinancialQdataQthatQmightQhelpQmanagersQmakeQmoreQeffectiveQdecisions.QMajorQaspectsQofQ
managerialQaccountingQrelateQtoQmakingQfinancialQplansQforQtheQorganization,QimplementingQthoseQ
plans,QandQthenQworkingQtoQensureQthatQtheQplansQareQachieved.QSomeQexamplesQofQmanagerialQac
countingQincludeQpreparingQannualQoperatingQbudgets,QgeneratingQinformationQforQuseQinQmakingQ
majorQinvestmentQdecisions,QandQprovidingQtheQdataQneededQtoQdecideQwhetherQtoQbuyQorQleaseQa
QmajorQpieceQofQequipment.QFinancialQaccountingQprovidesQretrospectiveQinformation.QAsQeventsQt

hatQhaveQfinancialQimplicationsQoccurQtheyQareQrecordedQbyQtheQfinancialQaccountingQsystem.QFromQ
timeQtoQtimeQ(usuallyQmonthly,Qquarterly,QorQannually),QtheQrecordedQdataQareQsummarizedQandQre
portedQtoQinterestedQusers.QTheQusersQincludeQbothQinternalQmanagersQandQpeopleQoutsideQtheQorg
anization.QThoseQoutsidersQincludeQthoseQwhoQhaveQlentQorQmightQlendQmoneyQtoQtheQorganization
Q(creditors),QthoseQwhoQmightQsellQthingsQtoQtheQorganizationQ(calledQsuppliersQorQvendors),QandQot

herQinterestedQparties.QTheseQinterestedQpartiesQmayQincludeQthoseQwithQaQparticularQinterestQinQpu
blicQserviceQorganizations,QsuchQasQregulators,Qlegislators,QandQcitizens.QFinancialQreportsQprovideQin

, Instructor’sQManualQforQFinancialQManagementQforQPublic,QHealth,QandQNot-for-
formation QonQtheQfinancial
ProfitQOrganizations1, QstatusQofQtheQorganizationQatQaQspecificQpointQinQtime,QasQwellQasQreporti


ngQtheQpastQresultsQofQtheQorganization‘sQoperationsQ(i.e.,QhowQwellQitQ hasQdoneQfromQaQfinancialQvi
ewpoint).

, ChapterQ3:Q AdditionalQ BudgetingQ Concept 3-4
s

1-
6.QFinanceQfocusesQonQtheQalternativeQsourcesQandQusesQofQtheQorganization‘sQfinancialQresources.Q
ObtainingQfundsQwhenQneededQfromQappropriateQsourcesQandQtheQdeploymentQofQresourcesQwithi
nQtheQorganizationQfallQunderQthisQheading.QInQaddition,QfinanceQinvolvesQtheQfinancialQmarketsQ(suc
hQasQstockQandQbondQmarkets)QthatQ provideQaQmeansQtoQ generatingQfundsQforQorganizations.

1-
7.QYes.QAchievingQtheQgoalsQofQtheQorganizationQrequiresQfinancialQplanning.QFinancialQmanagemen
tQprovidesQinformationQforQmanagersQtoQuseQinQmakingQtheirQdecisions.QItQhelpsQmanagersQbyQprov
idingQinformationQonQtheQlikelyQfinancialQimpactQofQeachQproposedQalternative.QItQalsoQprovidesQinf
ormationQaboutQfinancialQstability,Qefficiency,QandQeffectiveness.

1-
8.QClearly,QweQmightQexpectQsomeQpublicQserviceQorganizationsQthatQareQproprietary,QsuchQasQsome
Qhospitals,QtoQearnQprofits.QButQwhatQaboutQotherQpublicQserviceQorganizationsQsuchQasQcharities?QT

heyQshouldQmakeQaQprofitQasQwell.QProfitsQprovideQaQsafetyQmarginQagainstQunexpectedQcosts,Qprovi
deQresourcesQtoQ replaceQbuildingsQandQequipment,QandQtoQexpandQandQimproveQservices.

1-9.Q FederalQgovernmentQ(seeQtextQFigureQ1-1)
 IndividualQincomeQtaxes
 SocialQinsuranceQtaxes
 CorporateQincomeQtax

StateQandQlocalQgovernmentQ(seeQtextQFigureQ1-4)
 SalesQandQgrossQreceiptsQtax
 FederalQgovernment
 PropertyQtaxes
 IndividualQincomeQtaxes

HealthQsectorQ(seeQtextQFigureQ1-6)
 PrivateQinsurance
 Medicare
 Medicaid
 OtherQgovernmentQprograms

Not-for-profitQ sectorQ(seeQtext)
 PrivateQpaymentsQforQgoodsQandQservices
 GovernmentQpaymentsQforQgoodsQandQservices
 Donations

1-
10.QFederalQgovernmentQspendingQexceededQ$6QtrillionQinQ2020QandQstateQandQlocalQgovernmentQ s
pendingQwasQmoreQthanQ$3QtrillionQinQ2018.QInQcontrast,QtheQGDPQwasQ$21QtrillionQinQ2020.QForQmor
eQupQtoQdateQinformation,QexamineQtheQstatisticalQtablesQofQtheQmostQrecentQEconomicQReportQofQt
heQPresident,QwhichQisQavailableQonline.