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Financial Management for Public Health and Not for Profit Organizations 5th Edition Finkler Solutions ManualFull Download: ations-5th2-1Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations, 5EChapter 2PLANNINGFORSUCCESS:BUDGETINGQUESTIONS FOR DISCUSSION2-1. Planning helps the organization by causing its employees to think ahead and anticipate change.This is done by establishing specific goals and objectives, communicating those objectives to theindividuals who must achieve them, forecasting future events, developing alternatives, selectingfrom among alternatives, and coordinating activities. The activities are summarized in adocument called a budget. The budget describes what we hope to achieve and the resources thatwill be used to carry out the organization’s activities.2-2. The organization’s mission represents its reason for existence. For public, health, and not-forprofit organizations, finances often become a means to an end, rather than the end itself. Thismission cannot solely be making profits. Financial management must help balance the focus onprofit with the public service elements of the organization’s mission.2-3. Strategic plans translate the mission of the organization into an approach or set of approachesthat will be used to accomplish the mission, and a broad set of goals that need to be attained toachieve the mission. Strategic plans set the organization’s long-term direction. They often do nothave specific financial targets. However, they set the stage for the specific, detailed budgets thatwill be established to achieve the organization’s goals.2-4. Whereas the strategic plan establishes goals, the long-range plan considers how to achieve thosegoals. Long-range plans establish the major activities that will have to be carried out in thecoming three to five years. This process links the strategic plan to the day-to-day activities of theorganization. Organizations that do not prepare a long-range plan are often condemned to onlysustain current activities, at best.2-5. Budgets establish the amount of resources that are available for specific activities. However,budgets do not merely limit the resources that can be spent. They represent the detailed plan thatsupports the organization’s efforts to achieve its mission, and help the organization determineand achieve its goals and objectives. The budgeting process is one of exploring possibilities.Organizations determine what things they can and cannot do. They examine alternatives andchoose those that are likely to yield the best results. They become attuned to possible problemsand can work to find solutions. Budgeting forces managers to think ahead, to have clearexpectations against which to measure performance, and to coordinate the activities of theorganization so that everyone is working toward a common purpose.Budgets are also used to control results. That is, budgets not only create plans, but they arealso used to help accomplish those plans. This is done by comparing actual results to the budget.This sample only, Download all chapters at: alibabadownload.com
Chapter 2: Planning for Success: Budgeting2-2Looking at results, we can assess what needs to be corrected. How good a job did theorganization’s management do? How well did the organization itself do? In order to evaluateperformance, one must have a standard or benchmark to compare with actual results. The budgetestablishes the organization’s expectations.2-6. An organization may consider undertaking an activity that was not planned for when the annualbudget was prepared. At any time an organization can prepare a special budget for a specificpurpose. Appropriate approval should be obtained before implementing the budget.2-7. An organization’s budgets are often organized into a strategic plan, long-range plan, masterbudget, and special purpose budgets.2-8. Budgets present specific, measurable goals. An individual is much more likely to work efficientlyif there is a target to shoot for, assuming that the target is not unrealistic.2-9. Most employees would prefer salaries that are substantially larger than the amounts they arecurrently receiving. Organizations lack the revenues to pay for those raises. Most managerswould like more office space with new furniture and remodeled facilities. They would certainlylike more staff to carry out existing functions. Organizations must make choices concerning howto spend their limited resources.2-10. The manager should make sure that it is in the staff’s best interests to do the things that are in theorganization’s best interests. The key is to establish a means of making the normally divergentdesires of the organization and its employees become convergent, or congruent. Organizationsoften achieve congruence by setting up a system of incentives.2-11. Financial incentives include retaining one’s job and receiving good raises and bonuses. Bonussystems have a variety of problems. Some bonus systems reward all employees if spending isreduced. This is good unless workers can restrict volume, thus reducing the number of units ofservice provided in order to save money. Such behavior would likely reduce revenues by agreater amount than it would save costs. Also, if everyone gets a bonus, then no one feels thatindividual actions have much impact, and each individual may feel that she or he does not haveto work particularly hard to reap the benefits of the bonus. If bonuses are given only to someemployees, it may create jealousy and discontent. It is also possible that it may create acompetitive environment in a situation in which teamwork is needed to provide quality care.There are incentive alternatives to bonuses; for example, a letter from supervisor to subordinate.In the real world, praise is both cheap and, in many cases, effective. On the other hand, criticism,especially in writing, can have a stinging effect that managers will work hard to avoid in thefuture.2-12. If targets are placed out of reach, people probably will not stretch to their utmost limits to comeas close to the target as possible. When people work extremely hard and then fail, they oftenquestion why they bothered to work so hard. If hard work results in failure to achieve the target,then why not ease off? If you are going to fail anyway, must it be so painful?
2-3Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations, 5E2-13. (1) The budget is first prepared. (2) After review by the body with adoption authority, it isadopted, either with or without changes. (3) Once approved, the budget is implemented. It is theresponsibility of the management of the organization or the executive branch of the governmentto assure that the adopted budget is carried out. (4) Finally, the results must be evaluated.Accountability is an element of this evaluation.2-14. In some organizations, support and revenues are only acknowledged if they have been received incash. In those cases, expenses are recognized when they have been paid. For organizations thatrecord their revenues and expenses in that way, the cash budget would be identical to theoperating budget. They are said to use a cash basis of accounting. In contrast, if revenue isrecorded in the year the service is provided, whether cash has been received yet or not, then theorganization is said to be using an accrual basis of accounting.Cash accounting is easier, but does it enable us to understand how well our organization isdoing? With accrual accounting we accrue, or anticipate, the eventual receipt of money forservices provided, as well as recording expenses for resources consumed, even if they have notyet been paid for. When accrual accounting is used, the operating budget gives us a good idea ofhow profitable we expect the organization to be. However, it does not give an accurate idea ofhow much cash we will have.2-15. Modified cash is a system that treats most revenues and expenses on a cash basis. However,capital acquisitions are depreciated over time, rather than all being treated as an expense in theyear cash is paid for them.2-16. The budget process can be quite complicated and time consuming. The process may take one tothree months in small organizations and four to six months or even longer in larger ones. In orderto assure that the budget is ready for adoption sufficiently early to be implemented at the start ofthe coming year, many organizations prepare a budget calendar or timeline. Governmenttimelines are often set by law or regulation.
2-4Chapter 2: Planning for Success: BudgetingPROBLEMSThe exhibits below are embedded Excel objects. Double-clicking on them will open an Excelspreadsheet.2-17First YearCollections/RevenuesDisbursements/ExpensesNet Cash Flow/ Profit or LossCollectionsDisbursementsNet Cash FlowCashBudget 15,000 6,000 9,000Plus First-Year Cash BalanceCash at End of Year Two Second Yeari.ii.iii.CashBudget 45,000 52,000 (7,000)OperatingBudget 60,000 58,000 2,000(7,000)2,000The first year cash profit is (7,000).The accrual basis profit is 2,000.If Finn Fixes were to stop operations at the end of the first year, it's second-year cash profitwould be 9,000Finn' second-year ending cash balance would be 2,000 - exactly the same amount as the 1styear's accrual budgetpredicted.Accrual better reflects the long-term stability of the organization.iv.v.2-18. 432-191. EarnsUses2. depreciation3. cash or cash flows; or the full project life
2-5Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations, 5E2-20.Monroe Outpatient Surgery CenterOperating BudgetJune 2018RevenuesExpensesProfessional FeesSurgical nTotal ExpensesProfit/(Loss) 200,00080 procedures x 2,500/procedure 80 procedures x 1,500/procedure80 procedures x 300/procedureGivenGivenGiven 240,000 / 60 months 120,00024,00010,5008,2001,2004,000167,900 32,1002-21. (Capital Assets and Depreciation Expense)CostBuilding: 40,000,000Equipment:6,000,000Depreciable Base(Cost - Salvage)Salvage 1,200,000 n 480,000 Total1,000,0001,480,0002-22.Operating BudgetTotal RevenueMarch Total Expenses 160,00048,00012,0006,000 226,000Profit/(Loss) 14,000Cash BudgetBeginning BalanceMarch 26,000Cash ReceiptsFebruary BillingsMarch BillingsTotal CollectionsTotal Cash Available 150,00060,000 210,000 236,000DisbursementsPayroll PaymentSupply PaymentsBuilding AcquisitionTotal Disbursements 170,00045,000 250,000 465,000Cash Surplus/(Shortfall)Borrowing/(Repayment) (229,000)250,000Capital BudgetBuilding AcquisitionMortgage 250,000 250,000
2-6Chapter 2: Planning for Success: Budgeting2-23. (Cash and Operating Budgets)Middleboro TownshipOperating BudgetFourth QuarterRevenuesIncome TaxLoanTotal Revenue 750,00035,000 785,000ExpendituresSalariesInterestSupplies 720,000437.50390,000Total Expend. 1,110,438Surplus/(Deficit) (325,438)Beginning CashTax ReceiptsLoan ReceiptCash AvailableSalariesSuppliesEnding Cash(earned equally throughout year)(revenue under modified accrual)( 35,000 x 5% - 2,800 /4 437.50 per quarter(expenditure when legal obligation to pay; i.e., whensupplies received)Middleboro TownshipCash BudgetFourth Quarter 300,000 Given600,000 Cash rather than accrual basis35,000 935,000-720,000-300,000 From first quarter due to payment lag( 85,000)Note that operating budget and cash budget results are not the same, because of timing differencesof when things are recorded under an accrual approach.
2-7Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations, 5E2-24. (Special Purpose Budget)BudgetRevenueSupermarket SubsidyTotal Revenue 1,000 1,000Less ExpensesEquipment rentalNurses 50 10 hours 7 daysTest Costs 700 1Total Expenses 5003,500700 4,700Surplus/loss( 3,700)No, it is not necessarily financially bad. This program may discover patients with hypertension or othermedical problems who will become patients of the hospital, generating additional revenues. Also itprovides the hospital with a way to advertise their services, generating future patient volume andrevenue.2-25. (Cash Budget)Beginning BalanceCash ReceiptsProperty taxSales TaxTotal Cash AvailableLess Cash DisbursementsNet Cash AvailableBorrow/(repay)Ending Cash BalanceJanuary 500,000February 1,300,000March 1,200,0004,500,0000 5,000,0003,600,0000 4,900,0002,250,000230,000 3,680,0003,700,0003,700,0003,700,000 1,300,0000 1,300,000 1,200,0000 1,200,000( 20,000)120,000 100,000
2-8Chapter 2: Planning for Success: Budgeting2-26Assessed ValuationExempt PropertiesTax Delinquency rateGeneral Fund NeedAmount drawn from Rainy-Day Fund300,000,0005,000,00010%3,500,000500,000Less: Exempt PropertyProperty Subject to Taxation300,000,0005,000,000295,000,000#1Amount NeededLess: Amount drawn from Rainy-Day FundAdjusted Taxes to be BilledPlus: Uncollectible taxesTotal value of tax bills to be sent3,500,000500,0003,000,000333,3333,333,333#2Tax Rate (# 2 / # 1)Mill rate ( # 3 * 1000)0.011299 11.299#3.2-271. a) increase2. b) decrease3. b) decrease2-28. Capital BudgetItem to beAcquiredGarbage TrucksBulldozerRiding MowersActivity 40Cost 150,000240,00016,000650,000TotalCost 300,000240,00048,000650,000 1,238,000
2-9Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations, 5E2-29. (Operating Budget) The zoo expects the following number of visitors per month:Visitor TypeAdultChildSchool childFamiliesTotalMonthlyNumber ofAdmissionTickets8009501,000300Price perAdmission ( )AdmissionRevenues85320TotalAdmitted 6,4004,7503,0006,000 20,1508009501,0001,2003,950BudgetRevenuesCounty GrantAdmissionsTotal Revenues 7,00020,150 27,150ExpensesAdministrationStaffTrain CostsMaintenanceTotal ExpensesProfit/(Loss) 12,00010,0001,3173,950 27,267( 117)2-30. (Cash Budget)TotalAdmissions by QuarterAdmission Revenue 180,000Quarter 130% 54,000Quarter 225% 45,000Quarter 315% 27,000Quarter 430% 54,000
2-10Chapter 2: Planning for Success: BudgetingCash BudgetBeginning CashCash ReceiptsAdmissionsCounty GrantTotal Cash AvailableQuarter 1 5,000Quarter 2 5,00054,0000 59,00045,0000 50,000 55,0005,40010,800 71,200( 12,200) 55,0006,0009,000 70,000( 20,000)17,200 5,00025,000 5,000 17,200 42,200Cash DisbursementsAdministration and StaffTrain CostsMaintenanceTotal Cash DisbursementsSubtotalBorrow (Repay)Ending BalanceNote Payable2-31.March cash receipts60% of 13,00040% of 12,500Total cash receipts 7,8005,000 12,8002-32.Q1Sources of RevenueContributionsFederal GrantsCity ContractsTotal Revenue 25,000250,000240,000515,000Same Qtr.Collections by Quarter and SourceContributions100%Federal GrantsCity ContractsQ2 35,000375,000300,000 710,000One Qtr.Later100%25%Q3 Q435,000350,000320,000705,000Two Qtrs.Later25% 50,000250,000360,000660,000Three Qtrs.Later50%
2-11Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations, 5ECollectionsContributionsFederal GrantsCity Contracts3rd Qtr2nd Qtr.1st Qtr.Total City ContractsTotal Collections4th Quarter 50,000 350,000 80,00075,000120,000275,000 675,0002-33.Re:PlateAnnual Operating BudgetFiscal Year 2017Revenues & SupportGrocery sales 1,650,000Class fees39,000Total revenues & support 1,689,000ExpensesFoodRentSalaries and benefitsInterestDepreciationTotal expensesProfit /(Loss) 1,250,000120,000294,00040011,750 1,676,150 12,850
2-12Chapter 2: Planning for Success: BudgetingRe:PlateSemiannual Cash BudgetFiscal Year 2017Beginning BalanceReceiptsGrocery salesClass feesTotalAvailable CashPaymentsFoodRentSalaries and benefitsInterestTotalSubtotalFirst Half Second HalfAnnual 21,000 37,000 0,00039,0001,689,000 865,500 881,500 0 37,000-BorrowingRepaymentsInvestmentsEnding balance 37,00048,60040,000(10,000)(40,000) 38,6002-34.A&BUnit RevenuesMonthly parent tuitionMonthly County tuitionUnit CostsInside teachers per hourOutside teachers per hourSoftware per yearSupplies per student per session 10 200 50 60 2,400 1.5048,60040,000(10,000)(40,000) 38,600
2-13Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations, 5EStudentsStudent to teacher ratioNumber of teachersWhole number of teachersNumber of inside teachersNumber of outside teachersTutoring sessions per monthHours per sessionTeacher HoursInsideOutsideRevenueTuition - ParentsTuition - CountyTotal RevenueExpensesInside teachersOutside teachersSuppliesSoftwareTotal ExpensesSurplus/(Deficit)Month 12505,000 5,250 Month 1255555082Month 24158.295482Month 352510.411568280080648096Month 24108,200 8,610Month 3 52010,400 10,920 4,0003002004,500 4,0003,8404922008,532 750 78C – Monthly detail shown to illustrate the solutionFull Qtr.1,18023,600 24,780 4,0005,76062420010,584 12,0009,6001,41660023,616 336 1,164
2-14Chapter 2: Planning for Success: BudgetingCash BudgetBeginning BalanceReceiptsParent TuitionCounty ContractTotal ReceiptsMonth 1Month 2Month 3Full Qtr.(6,450) (9,372) - - 250 250 Available Cash 250 DisbursementsSalariesSoftwareSuppliesTotal Disbursements 4,0002,4003006,700 7,840 9,760 4928,332 62410,384Cash Surplus/(Shortfall) 2-35. Marquoya College(6,450) 4105,0005,410 (1,040) 5208,2008,720 1,18013,20014,380(652) 14,380 (9,372) (11,036) 21,6002,4001,41625,416(11,036)
2-15Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations, 5EPart ITuition Revenue 15,640,000Less: Scholarships1,360,000Net Tuition RevenueFee Revenue(4300 300) * ( 3,300 100)Less 400 Scholarships 14,280,000 1,288,0004,600 * 280 9,000,000250 * 36,000Part IIFaculty salaries:Full time5% Increase450,000Merit Increase280,000Adjunct Faculty270,000Total Faculty SalariesPayroll TaxesGiven20 * 18 * 750 10,000,000 1,000,00010% * Total Faculty SalariesPart IIIBudgeted ReceiptsTuitionFees 14,280,0001,288,000Endowment514,000Auxiliary Services538,000AthleticsTotal Budgeted Receipts1,580,000 18,200,000
2-16Chapter 2: Planning for Success: BudgetingBudgeted ExpendituresFaculty SalariesOperation and Maintenance of PlantMortgage payments 10,000,0001,260,000264,000Administration & General1,440,000Library1,800,000Health & Recreation750,000Athletics320,000Insurance & Retirement Benefits548,000Capital Improvements1,300,000Payroll Taxes1,276,000Federal Income TaxesBank LoanTotal Budgeted ExpendituresProjected Deficit Prior to Fund Raising36,000204,000 19,198,000( 998,000) 1,000,000 10,000 50,000GivenGivenGivenGivenGivenGivenGivenTotal Salaries * 10%Given 200,000 4,000
2-17Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations, 5EPart IVBeginning Cash BalanceAdd: Cash ReceiptsTuitionFeesEndowmentAuxiliary ServiceAthleticsAlumni SupportTOTAL CASH AVAILABLELess: Cash DisbursementsFaculty SalariesOper. & Maint. of PlantMortgage PaymentsAdmin. & GeneralLibraryHealth & RecreationAthleticsInsurance & Retirement Ben.Capital ImprovementsPayroll TaxesFederal Income TaxesTOTAL DISBURSEMENTSPRE-FINANCING CASH BALANCEFinancing Activity:Borrow (REPAY)Disinvest (INVEST)ENDING CASH BALANCESEPTEMBEROCTOBERNOVEMBER 2,006,600 3,0002,856,000644,000128,50053,800158,00015,000 3,859,00000053,800015,000 2,075,4002,142,0000053,800790,00090,000 3,078,800 ,8000106,3000 1,648,400 2,210,600 ,8001,040,000106,3000 2,672,400( 597,000) ,8000106,3009,000 1,682,600 1,396,200(204,000) 2,006,600600,000 3,000 3,700(608,000) 788,200Note: instructions said to round to nearest 100The Marquoya College problem and solution were written by Ken Milani and Jim Gaertner. Used withpermission.
2-18Chapter 2: Planning for Success: BudgetingEXTENDED PROBLEM:DENISON SPECIALTY HOSPITALSOLUTIONPart ISection A1.Calculation of patient revenueOncologyPrivate ivate tyPrivate x(A)ProgramVolume(B)Volume byPayer(C A B)NetPrice(D)NetRevenue(E C D)30%50%10%10%12012012012036601212 50,00040,00050,0000 600,000400Total Patient Revenue 7,980,000Endowment revenueU.S. BondAT&T DivGrowth StockInvestment 500,000250,000250,000 1,000,000Rate6%8%0%Income 30,00020,0000 50,000
2-193.Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations, 5EGift shop revenue: 120,000 for current year. Will remain the same next year. Assume that giftshop revenue varies with the number of patients in the hospital.Denison Specialty HospitalRevenue Budgetfor Next YearNet Patient Revenue 7,980,000Gift Shop Revenue120,000Endowment Income50,000Total Budgeted Revenue 8,150,000Section B1.Calculation of expected bad debtsOncology Self-Pay(from above)Cardiac Self-Pay(from above)Rhinoplasty Self-Pay(from above)Budgeted Bad Debts2.Revenue 600,000320,000600,000Bad DebtRate25%25%25%Consider annual impact of capital budget 500,000 5-year life: Annual Expense 100,000Denison Specialty HospitalExpense Budgetfor Next YearSalaries 6,900,000Supplies540,000Bad Debts380,000Rent300,000Depreciation Expense100,000Total Budgeted Expense 8,220,000Bad Debt 150,00080,000150,000 380,000
2-20Chapter 2: Planning for Success: Budgeting3.Denison Specialty HospitalOperating BudgetFor Year Ending Last Day of Next YearRevenuesNet Patient RevenueGift ShopEndowmentTotal Budgeted RevenueExpensesSalariesSuppliesBad DebtsRentDepreciationTotal Budgeted ExpenseBudgeted Excess of Revenues over Expenses 7,980,000120,00050,000 8,150,000 6,900,000540,000380,000300,000100,0008,220,000 (70,000)INSTRUCTOR’S NOTESDenison Specialty HospitalYou may wish to distribute copies of the previous tables as you discuss the case and retain thenotes below for your discussion preparation.The numerical solution to the case appears above. Try to stress the importance and use of theinformation as much as possible. The hardest part of the process is gathering the data that was given inthe case. Assembling that data into the actual budgets is the easier element. The solution is organized asfollows:Part ISection A1.Calculation of patient revenue—the payer mix is provided in the case, as is the volume of patientsfor each program. The volume by payer is calculated by multiplying those two factors.The net price is the same as the charge for the private insurance. The net price is set by thegovernment for Medicare and Medicaid in this example.The net price is the same as the charge for the self-pay patient, even though we know therewill be some bad debt. The full charge is the revenue, and bad debt will be subtracted later as anexpense. This follows current accounting rules for hospitals.The net price is 0 for charity care. This follows current accounting rules for hospitals.Multiply volume by net price to get net revenue.
2-21Instructor’s Manual for Financial Management for Public, Health, and Not-for-Profit Organizations, 5E2.Endowment income is based directly on information given in the case.3.Revenue budget simply sums the different elements. Gift shop revenue is given in the case. Wemight want to discuss whether they have overlooked other revenue. Is there generally contributionrevenue? Do we think we can raise our prices? Do we want to raise our prices? Are we happy withour endowment income? If we expect a deficit, are we willing to take a greater risk? Are weconfident that we will get our expected volume and prices?Section B1.Calculation of Expected Bad Debts: The case says that 25% of self-pay is never collected. Therevenue numbers come from Part I, Section A calculations above.2.Expense Budget: The total salaries, supplies, and rent are all given in the case. The result is a lineitem expense budget. This does not tell us much about the relative cost of different programs or ofrunning different departments.3.Combine the revenue and expense budgets into one table to yield the operating budget.
Problem 2-17SOLUTIONFirst YearCollections/RevenuesDisbursements/ExpensesNet Cash Flow/ Profit or LossCashBudget 45,000 52,000 (7,000)CollectionsDisbursementsNet Cash FlowCashBudget 15,000 6,000 9,000Plus First-Year Cash BalanceCash at End of Year Two Second YearOperatingBudget 60,000 58,000 2,000(7,000)2,000Cash at the end of year 2 is the same as the accrual basis.Accrual basis better refelcts long-term stability of organization.
EXTENDED PROBLEM: DENISON SPECIALTY HOSPITALSOLUTIONPart ISection A.1 Calculation of patient revenue.OncologyPrivate ivate tyPrivate A)ProgramVolume(B)Volume byPayer(C A x B)NetPrice(D)30%50%10%10%12012012012036601212 25,00040Total Patient Revenue
NetRevenue(E C x D) 100,00080,000600,0000 7,980,000
Section A.2 Calculation of endowment revenue.U.S. BondAT&T DivGrowth StockInvestment 500,000250,000250,000 1,000,000Rate6%8%0%Income 30,00020,0000 50,000
Section A.3 Revenue Budget.Denison Specialty HospitalRevenue Budgetfor Next YearNet Patient Revenue 7,980,000Gift Shop Revenue120,00050,000Endowment IncomeTotal Budgeted Revenue 8,150,000
Section B.1 Bad Debt ExpensesOncology Self-PayCardiac Self-PayRhinoplasty Self-PayBudgeted Bad DebtsRevenue 600,000320,000600,000Bad DebtRate25%25%25%Bad Debt 150,00080,000150000 380,000
Section B.2 Expense BudgetDenison Specialty HospitalExpense Budgetfor Next YearSalaries 6,900,000Supplies540,000Bad Debts380,000Rent300,000Depreciation Expense100000Total Budgeted Expense 8,220,000
Financial Management for Public Health and Not for Profit Organizations 5th Edition Finkler Solutions ManualFull Download: ations-5th-Section B.3 Operating BudgetDenison Specialty HospitalOperating BudgetFor Year Ending Last Day of Next YearRevenuesNet Patient RevenueGift ShopEndowmentTotal Budgeted RevenueExpensesSalariesSuppliesBad DebtsRentDepreciationTotal Budgeted ExpenseBudgeted Excess of Revenues over Expenses 7,980,000120,00050,000 8,150,000 6,900,000540,000380,000300,000100,000This sample only, Download all chapters at: alibabadownload.com8,220,000( 70,000)
The accrual basis profit is 2,000. iii. If Finn Fixes were to stop operations at the end of the first year, it's second-year cash profit would be 9,000 iv. Finn' second-year ending cash balance would be 2,000 - exactly the same amount as the 1st-year's accrual budgetpredicted. v. Accrual better reflects the long-term stability of the .
