SOLUTION MANUAL
Construction Accounting and Financial Management,
4th Edition Steven J. Peterson
Chapters 1 - 18, Complete Newest Version
ConstructiongAccountinggandgFinancialgManagement,
, CONTENTS
NewgtogthegFourthgEdition 1
Chapterg1:gConstructiongFinancialgManagement 2
Chapterg2:gConstructiongAccountinggSystems 4
Chapterg3:gAccountinggTransactions 7
Chapterg4:gMoregConstructiongAccounting 23
Chapterg5:gDepreciation 34
Chapterg6:gAnalysisgofgFinancialgStatements 50
Chapterg7:gManaginggCosts 58
Chapterg8:gDetermininggLaborgBurden 62
Chapterg9:gManaginggGeneralgOverheadgCosts 65
Chapterg10:gSettinggProfitgMarginsgforgBidding 67
Chapterg11:gProfitg CentergAnalysis 70
Chapterg12:gCashgFlowsgForgConstructiongProjects 75
Chapterg13:gProjectinggIncomegTaxes 87
Chapterg14:gCashgFlowsgforgagConstructiongCompany 91
Chapterg15:gTimegValuegofgMoney 93
Chapterg16:gFinancinggagCompany’sgFinancialgNeeds 99
Chapterg17:gMakinggFinancialgDecisions 111
Chapterg18:gIncomegTaxesgandgFinancialgDecisions 130
ConstructiongAccountinggandgFinancialgManagement,
, iii
ConstructiongAccountinggandgFinancialgManagement,
, New to the Fourth Edition
g g g g
Thegmajorgchangesgtogthegfourthgeditiongincludegthegfollowing
• ThegbusinessgfailuregrategforgconstructiongcompaniesgingChapterg1ghavegbe
engupdated.
• SectionsgongcostgsegregationgandgbonusgdepreciationghavegbeengaddedgtogChapterg5.
• ThegdiscussiongofgtypicalgmediangratiosgingChapterg6ghasgbeengupdated.
• AgsectiongongthegmonitoringgandgcontrollinggprocessghasgbeengaddedgtogChapterg7.
• Agsectiongongmanaginggdesign-buildgcostsghasgbeengaddedgtogChapterg7.
• Thegwages,gsocialgsecurity,gandgMedicaregcostsgweregupdatedgingChaptersg8,g
9,gandg14.
• AgweeklygcashgflowgproblemghasgbeengaddedgtogChapterg12.
• ThegincomegtaxgregulationsgingChapterg13ghavegbeengupdatedgtogincorpora
tegprovisionsgofgThegTaxgCutsgandgJobsgActgpassedgingDecemberg2017.
• Thegprojectgcashgflowsgusedgtogdevelopgangannualgcashgflowgforgagconstructiongc
ompanyghavegbeengexpandedgtogcovergthegentiregprojectg(includinggworkgdonegi
ngthegpriorgyear)gandgthegcalculationgofgthegunderbillings/overbillingsghasgbeengi
ncludedgingChapterg14.
• ThegeffectsgofgtaxesgongdecisionghasgbeengupdatedgingChapterg18gtogincorporategt
hegTaxgCutsgandgJobsgAct.
ThegInstructor’sgManualgincludesgaglistgofglearninggobjectives,ginstructionalghints,gsuggest
edgactivities,gandgresourcesgforgeachgchapter.gFilesgforgthegfiguresgandgtablesgingthegtextb
ookgaregfoundgongtheginstructor’sgwebsite.gItgisgmyghopegthatgthesegresourcesgwillgmakegi
tgeasiergforgcourseginstructorsgtogteachgthegmaterialgingagmeaningfulgmanner.gBecausegth
egcoursesgthatgusegthisgtextbookgaregquitegdiverse,gitgisgimpossiblegtogorganizegthegchapte
rsgintogonegbestgorder.gEachginstructorgshouldgconsiderghisgorghergindividualgprogramgand
gdeterminegwhichgchaptersgneedgtog begtaughtgandg ingwhatgorder.
Bestgwishes,
StevengJ.gPeterson,gMBA,gPE
Construction Accounting and Financial Management,
4th Edition Steven J. Peterson
Chapters 1 - 18, Complete Newest Version
ConstructiongAccountinggandgFinancialgManagement,
, CONTENTS
NewgtogthegFourthgEdition 1
Chapterg1:gConstructiongFinancialgManagement 2
Chapterg2:gConstructiongAccountinggSystems 4
Chapterg3:gAccountinggTransactions 7
Chapterg4:gMoregConstructiongAccounting 23
Chapterg5:gDepreciation 34
Chapterg6:gAnalysisgofgFinancialgStatements 50
Chapterg7:gManaginggCosts 58
Chapterg8:gDetermininggLaborgBurden 62
Chapterg9:gManaginggGeneralgOverheadgCosts 65
Chapterg10:gSettinggProfitgMarginsgforgBidding 67
Chapterg11:gProfitg CentergAnalysis 70
Chapterg12:gCashgFlowsgForgConstructiongProjects 75
Chapterg13:gProjectinggIncomegTaxes 87
Chapterg14:gCashgFlowsgforgagConstructiongCompany 91
Chapterg15:gTimegValuegofgMoney 93
Chapterg16:gFinancinggagCompany’sgFinancialgNeeds 99
Chapterg17:gMakinggFinancialgDecisions 111
Chapterg18:gIncomegTaxesgandgFinancialgDecisions 130
ConstructiongAccountinggandgFinancialgManagement,
, iii
ConstructiongAccountinggandgFinancialgManagement,
, New to the Fourth Edition
g g g g
Thegmajorgchangesgtogthegfourthgeditiongincludegthegfollowing
• ThegbusinessgfailuregrategforgconstructiongcompaniesgingChapterg1ghavegbe
engupdated.
• SectionsgongcostgsegregationgandgbonusgdepreciationghavegbeengaddedgtogChapterg5.
• ThegdiscussiongofgtypicalgmediangratiosgingChapterg6ghasgbeengupdated.
• AgsectiongongthegmonitoringgandgcontrollinggprocessghasgbeengaddedgtogChapterg7.
• Agsectiongongmanaginggdesign-buildgcostsghasgbeengaddedgtogChapterg7.
• Thegwages,gsocialgsecurity,gandgMedicaregcostsgweregupdatedgingChaptersg8,g
9,gandg14.
• AgweeklygcashgflowgproblemghasgbeengaddedgtogChapterg12.
• ThegincomegtaxgregulationsgingChapterg13ghavegbeengupdatedgtogincorpora
tegprovisionsgofgThegTaxgCutsgandgJobsgActgpassedgingDecemberg2017.
• Thegprojectgcashgflowsgusedgtogdevelopgangannualgcashgflowgforgagconstructiongc
ompanyghavegbeengexpandedgtogcovergthegentiregprojectg(includinggworkgdonegi
ngthegpriorgyear)gandgthegcalculationgofgthegunderbillings/overbillingsghasgbeengi
ncludedgingChapterg14.
• ThegeffectsgofgtaxesgongdecisionghasgbeengupdatedgingChapterg18gtogincorporategt
hegTaxgCutsgandgJobsgAct.
ThegInstructor’sgManualgincludesgaglistgofglearninggobjectives,ginstructionalghints,gsuggest
edgactivities,gandgresourcesgforgeachgchapter.gFilesgforgthegfiguresgandgtablesgingthegtextb
ookgaregfoundgongtheginstructor’sgwebsite.gItgisgmyghopegthatgthesegresourcesgwillgmakegi
tgeasiergforgcourseginstructorsgtogteachgthegmaterialgingagmeaningfulgmanner.gBecausegth
egcoursesgthatgusegthisgtextbookgaregquitegdiverse,gitgisgimpossiblegtogorganizegthegchapte
rsgintogonegbestgorder.gEachginstructorgshouldgconsiderghisgorghergindividualgprogramgand
gdeterminegwhichgchaptersgneedgtog begtaughtgandg ingwhatgorder.
Bestgwishes,
StevengJ.gPeterson,gMBA,gPE
