SOLUTION MANUAL n
Construction Accounting and Financial
n n n
Management,
n
4th Edition Steven J. Peterson
n n n n
Chapters 1 - 18, Complete Newest Version
n n n n n n
Construction nAccounting nand nFinancial nManagement,
, CONTENTS
New nto nthe nFourth nEdition 1
Chapter n1: nConstruction nFinancial nManagement 2
Chapter n2: nConstruction nAccounting nSystems 4
Chapter n3: nAccounting nTransactions 7
Chapter n4: nMore nConstruction nAccounting 23
Chapter n5: nDepreciation 34
Chapter n6: nAnalysis nof nFinancial nStatements 50
Chapter n7: nManaging nCosts 58
Chapter n8: nDetermining nLabor nBurden 62
Chapter n9: nManaging nGeneral nOverhead nCosts 65
Chapter n10: nSetting nProfit nMargins nfor nBidding 67
Chapter n11: nProfit n Center nAnalysis 70
Chapter n12: nCash nFlows nFor nConstruction nProjects 75
Chapter n13: nProjecting nIncome nTaxes 87
Chapter n14: nCash nFlows nfor na nConstruction nCompany 91
Chapter n15: nTime nValue nof nMoney 93
Chapter n16: nFinancing na nCompany’s nFinancial nNeeds 99
Chapter n17: nMaking nFinancial nDecisions 111
Chapter n18: nIncome nTaxes nand nFinancial nDecisions 130
Construction nAccounting nand nFinancial nManagement,
, iii
Construction nAccounting nand nFinancial nManagement,
, New to the Fourth Edition
n n n n
The nmajor nchanges nto nthe nfourth nedition ninclude nthe nfollowing
• The nbusiness nfailure nrate nfor nconstruction ncompanies nin nChapter n1
nhave nbeenn updated.
• Sections non ncost nsegregation nand nbonus ndepreciation nhave nbeen nadded nto
nChapter n5.
• The ndiscussion nof ntypical nmedian nratios nin nChapter n6 nhas nbeen nupdated.
• A nsection non nthe nmonitoring nand ncontrolling nprocess nhas nbeen nadded nto
nChapter n7.
• A nsection non nmanaging ndesign-build ncosts nhas nbeen nadded nto nChapter n7.
• The nwages, nsocial nsecurity, nand nMedicare ncosts nwere nupdated nin
nChapters n8, n9,n
and n14.
• A nweekly ncash nflow nproblem nhas nbeen nadded nto nChapter n12.
• The nincome ntax nregulations nin nChapter n13 nhave nbeen nupdated nto
n incorporatenprovisions nof nThe nTax nCuts nand nJobs nAct npassed nin
nDecember n2017.
• The nproject ncash nflows nused nto ndevelop nan nannual ncash nflow nfor na
nconstruction ncompany nhave nbeen nexpanded nto ncover nthe nentire
nproject n(including nwork ndone ninn the nprior nyear) nand nthe ncalculation nof
nthe nunderbillings/overbillings nhas nbeen nincluded n in nChapter n 14.
• The neffects nof ntaxes non ndecision nhas nbeen nupdated nin nChapter n18 nto
nincorporate nthen Tax nCuts nand nJobs nAct.
The nInstructor’s nManual nincludes na nlist nof nlearning nobjectives, ninstructional
nhints, nsuggested nactivities, nand nresources nfor neach nchapter. nFiles nfor nthe
nfigures nand ntables nin nthe ntextbook nare nfound non n the ninstructor’s nwebsite. nIt
nis nmy nhope n that nthese nresources nwill nmake nit neasier nfor ncourse ninstructors n to
nteach nthe nmaterial nin na n meaningful nmanner. nBecause nthe ncourses nthat nuse
nthis ntextbook nare nquite ndiverse, nit nis nimpossible nto norganize n the nchapters ninto
none nbest norder. nEach ninstructor nshould nconsider nhis nor nher nindividual
nprogram nand ndetermine nwhich nchapters nneed nto n be ntaught nand n in nwhat
norder.
Best nwishes,
Steven nJ. nPeterson, nMBA, nPE
Construction Accounting and Financial
n n n
Management,
n
4th Edition Steven J. Peterson
n n n n
Chapters 1 - 18, Complete Newest Version
n n n n n n
Construction nAccounting nand nFinancial nManagement,
, CONTENTS
New nto nthe nFourth nEdition 1
Chapter n1: nConstruction nFinancial nManagement 2
Chapter n2: nConstruction nAccounting nSystems 4
Chapter n3: nAccounting nTransactions 7
Chapter n4: nMore nConstruction nAccounting 23
Chapter n5: nDepreciation 34
Chapter n6: nAnalysis nof nFinancial nStatements 50
Chapter n7: nManaging nCosts 58
Chapter n8: nDetermining nLabor nBurden 62
Chapter n9: nManaging nGeneral nOverhead nCosts 65
Chapter n10: nSetting nProfit nMargins nfor nBidding 67
Chapter n11: nProfit n Center nAnalysis 70
Chapter n12: nCash nFlows nFor nConstruction nProjects 75
Chapter n13: nProjecting nIncome nTaxes 87
Chapter n14: nCash nFlows nfor na nConstruction nCompany 91
Chapter n15: nTime nValue nof nMoney 93
Chapter n16: nFinancing na nCompany’s nFinancial nNeeds 99
Chapter n17: nMaking nFinancial nDecisions 111
Chapter n18: nIncome nTaxes nand nFinancial nDecisions 130
Construction nAccounting nand nFinancial nManagement,
, iii
Construction nAccounting nand nFinancial nManagement,
, New to the Fourth Edition
n n n n
The nmajor nchanges nto nthe nfourth nedition ninclude nthe nfollowing
• The nbusiness nfailure nrate nfor nconstruction ncompanies nin nChapter n1
nhave nbeenn updated.
• Sections non ncost nsegregation nand nbonus ndepreciation nhave nbeen nadded nto
nChapter n5.
• The ndiscussion nof ntypical nmedian nratios nin nChapter n6 nhas nbeen nupdated.
• A nsection non nthe nmonitoring nand ncontrolling nprocess nhas nbeen nadded nto
nChapter n7.
• A nsection non nmanaging ndesign-build ncosts nhas nbeen nadded nto nChapter n7.
• The nwages, nsocial nsecurity, nand nMedicare ncosts nwere nupdated nin
nChapters n8, n9,n
and n14.
• A nweekly ncash nflow nproblem nhas nbeen nadded nto nChapter n12.
• The nincome ntax nregulations nin nChapter n13 nhave nbeen nupdated nto
n incorporatenprovisions nof nThe nTax nCuts nand nJobs nAct npassed nin
nDecember n2017.
• The nproject ncash nflows nused nto ndevelop nan nannual ncash nflow nfor na
nconstruction ncompany nhave nbeen nexpanded nto ncover nthe nentire
nproject n(including nwork ndone ninn the nprior nyear) nand nthe ncalculation nof
nthe nunderbillings/overbillings nhas nbeen nincluded n in nChapter n 14.
• The neffects nof ntaxes non ndecision nhas nbeen nupdated nin nChapter n18 nto
nincorporate nthen Tax nCuts nand nJobs nAct.
The nInstructor’s nManual nincludes na nlist nof nlearning nobjectives, ninstructional
nhints, nsuggested nactivities, nand nresources nfor neach nchapter. nFiles nfor nthe
nfigures nand ntables nin nthe ntextbook nare nfound non n the ninstructor’s nwebsite. nIt
nis nmy nhope n that nthese nresources nwill nmake nit neasier nfor ncourse ninstructors n to
nteach nthe nmaterial nin na n meaningful nmanner. nBecause nthe ncourses nthat nuse
nthis ntextbook nare nquite ndiverse, nit nis nimpossible nto norganize n the nchapters ninto
none nbest norder. nEach ninstructor nshould nconsider nhis nor nher nindividual
nprogram nand ndetermine nwhich nchapters nneed nto n be ntaught nand n in nwhat
norder.
Best nwishes,
Steven nJ. nPeterson, nMBA, nPE
