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Solution Manual for Financial Management for Public Health, and Not-for-Profit Organizations 7th Edition by Finkler, Calabrese & Smith Verified Chapters 1 - 15, Complete£10.60
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Solution Manual for Financial Management for Public Health, and Not-for-Profit Organizations 7th Edition by Finkler, Calabrese & Smith Verified Chapters 1 - 15, Complete
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Module
Finkler, Financial Management, 7th Edition
Institution
Finkler, Financial Management, 7th Edition
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
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SOLUTIONS MANUAL for Financial Management for
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Public Health, and Not-for-Profit Organizations 7th
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Edition by Steven Finkler, Thad Calabrese, (Complete 15
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Chapters)
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,Chapter 3: Additional Budgeting
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mConcepts
INTRODUCTION
Chapter 1 m
TO m
FINANCIAL
MANAGEMENT
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Questions for Discussionm m
1-1. Financial management is the subset of management that focuses on generating financial
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information that can improve decisions. The decisions are oriented toward achieving the
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various goals of the organization while maintaining a satisfactory financial situation.
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Financial management encompassesthe broad areas of accounting and finance.
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1-2. In proprietary, or for-profit, organizations, an underlying goal is to maximize the wealth of
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the owners of the organization.
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1-3. In public service organizations, decisions are oriented toward achieving the various goals
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of the organization while maintaining a satisfactory financial situation.
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1-4. Accounting is a system for keeping track of the financial status of an organization and the
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financial results of its activities. It has often been referred to as the language of
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business. The vocabulary used by accounting is the language of nonbusiness
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organizations as well.
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, Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit
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mOrganizations1,
1-5. Accounting is subdivided into two major areas: managerial accounting and financial
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accounting. Managerial accounting relates to generating any financial information that
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m managers can use to improve the future results of the organization. This includes
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m techniques designed to generate any financial data that might help managers make more
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effective decisions. Major aspects of managerial accounting relate to making financial plans
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for the organization, implementing those plans, and then working to ensure that the plans
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m are achieved. Some examples of managerial accounting include preparing annual
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m operating budgets, generating information for use in making major investment decisions,
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m and providing the data needed to decide whether to buy or lease a major piece of
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m equipment. Financial accounting provides retrospective information. As events that have
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m financial implications occur they are recorded by the financial accounting system. From
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time to time (usually monthly, quarterly, or annually), the recorded data are summarized
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m and reported to interested users. The users include both internal managers and people
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m outside the organization. Those outsiders include those who have lent or might lend
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m money to the organization (creditors), those who might sell things to the organization
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m (called suppliers or vendors), and other interested parties. These interested parties may
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include those with a particular interest in public service organizations, such as regulators,
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m legislators, and citizens. Financial reports provide information on the financial status of
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m the organization at a specific point in time, as well as reporting the past results of the
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organization‘s operations (i.e., how well it has done from a financial viewpoint).
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, Chapter 3: Additional Budgeting
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mConcepts
1-6. Finance focuses on the alternative sources and uses of the organization‘s financial
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m resources. Obtaining funds when needed from appropriate sources and the deployment
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m of resources within the organization fall under this heading. In addition, finance involves
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m the financial markets (such as stock and bond markets) that provide a means to
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m generating funds for organizations.
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1-7. Yes. Achieving the goals of the organization requires financial planning. Financial
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m management provides information for managers to use in making their decisions. It
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m helps managers by providing information on the likely financial impact of each proposed
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m alternative. It also provides information about financial stability, efficiency, and
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m effectiveness.
1-8. Clearly, we might expect some public service organizations that are proprietary, such as
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m some hospitals, to earn profits. But what about other public service organizations such
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m as charities? They should make a profit as well. Profits provide a safety margin against
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m unexpected costs, provide resources to replace buildings and equipment, and to expand
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m and improve services.
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1-9. Federal government (see text Figure 1-1)
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Individual income taxes m m
Social insurance taxes
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Corporate income tax m m
State and local government (see text Figure 1-4)
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