SOLUTION MANUAL
Construction Accounting and Financial Management,
4th Edition Steven J. Peterson
Chapters 1 - 18, Complete Newest Version
ConstructionbgAccountingbgandbgFinancialbgManagement,
, CONTENTS
NewbgtobgthebgFourthbgEdition 1
Chapterbg1:bgConstructionbgFinancialbgManagement 2
Chapterbg2:bgConstructionbgAccountingbgSystems 4
Chapterbg3:bgAccountingbgTransactions 7
Chapterbg4:bgMorebgConstructionbgAccounting 23
Chapterbg5:bgDepreciation 34
Chapterbg6:bgAnalysisbgofbgFinancialbgStatements 50
Chapterbg7:bgManagingbgCosts 58
Chapterbg8:bgDeterminingbgLaborbgBurden 62
Chapterbg9:bgManagingbgGeneralbgOverheadbgCosts 65
Chapterbg10:bgSettingbgProfitbgMarginsbgforbgBidding 67
Chapterbg11:bgProfitbg CenterbgAnalysis 70
Chapterbg12:bgCashbgFlowsbgForbgConstructionbgProjects 75
Chapterbg13:bgProjectingbgIncomebgTaxes 87
Chapterbg14:bgCashbgFlowsbgforbgabgConstructionbgCompany 91
Chapterbg15:bgTimebgValuebgofbgMoney 93
Chapterbg16:bgFinancingbgabgCompany’sbgFinancialbgNeeds 99
Chapterbg17:bgMakingbgFinancialbgDecisions 111
Chapterbg18:bgIncomebgTaxesbgandbgFinancialbgDecisions 130
ConstructionbgAccountingbgandbgFinancialbgManagement,
, iii
ConstructionbgAccountingbgandbgFinancialbgManagement,
, New to the Fourth Edition
bg bg bg bg
Thebgmajorbgchangesbgtobgthebgfourthbgeditionbgincludebgthebgfollowing
• ThebgbusinessbgfailurebgratebgforbgconstructionbgcompaniesbginbgChapterbg1bgha
vebgbeenbu g pdated.
• SectionsbgonbgcostbgsegregationbgandbgbonusbgdepreciationbghavebgbeenbgaddedbgtobgChapt
erbg5.
• ThebgdiscussionbgofbgtypicalbgmedianbgratiosbginbgChapterbg6bghasbgbeenbgupdated.
• AbgsectionbgonbgthebgmonitoringbgandbgcontrollingbgprocessbghasbgbeenbgaddedbgtobgChapterb
g7.
• Abgsectionbgonbgmanagingbgdesign-buildbgcostsbghasbgbeenbgaddedbgtobgChapterbg7.
• Thebgwages,bgsocialbgsecurity,bgandbgMedicarebgcostsbgwerebgupdatedbginbgChapt
ersbg8,bg9,bag ndbg14.
• AbgweeklybgcashbgflowbgproblembghasbgbeenbgaddedbgtobgChapterbg12.
• ThebgincomebgtaxbgregulationsbginbgChapterbg13bghavebgbeenbgupdatedbgtobginc
orporatebgprovisionsbgofbgThebgTaxbgCutsbgandbgJobsbgActbgpassedbginbgDecemb
erbg2017.
• Thebgprojectbgcashbgflowsbgusedbgtobgdevelopbganbgannualbgcashbgflowbgforbgabgconst
ructionbgcompanybghavebgbeenbgexpandedbgtobgcoverbgthebgentirebgprojectbg(includi
ngbgworkbgdonebginbgthebgpriorbgyear)bgandbgthebgcalculationbgofbgthebgunderbillings/o
verbillingsbghasbgbeenbgincludedbginbgChapterbg14.
• ThebgeffectsbgofbgtaxesbgonbgdecisionbghasbgbeenbgupdatedbginbgChapterbg18bgtobgincor
poratebgthebgTaxbgCutsbgandbgJobsbgAct.
ThebgInstructor’sbgManualbgincludesbgabglistbgofbglearningbgobjectives,bginstructionalbghints,bg
suggestedbgactivities,bgandbgresourcesbgforbgeachbgchapter.bgFilesbgforbgthebgfiguresbgandbgtab
lesbginbgthebgtextbookbgarebgfoundbgonbgthebginstructor’sbgwebsite.bgItbgisbgmybghopebgthatbgth
esebgresourcesbgwillbgmakebgitbgeasierbgforbgcoursebginstructorsbgtobgteachbgthebgmaterialbginbg
abgmeaningfulbgmanner.bgBecausebgthebgcoursesbgthatbgusebgthisbgtextbookbgarebgquitebgdive
rse,bgitbgisbgimpossiblebgtobgorganizebgthebgchaptersbgintobgonebgbestbgorder.bgEachbginstructo
rbgshouldbgconsiderbghisbgorbgherbgindividualbgprogrambgandbgdeterminebgwhichbgchaptersbgn
eedbgtobgbebgtaughtbgandbginbgwhatbgorder.
Bestbgwishes,
StevenbgJ.bgPeterson,bgMBA,bgPE
Construction Accounting and Financial Management,
4th Edition Steven J. Peterson
Chapters 1 - 18, Complete Newest Version
ConstructionbgAccountingbgandbgFinancialbgManagement,
, CONTENTS
NewbgtobgthebgFourthbgEdition 1
Chapterbg1:bgConstructionbgFinancialbgManagement 2
Chapterbg2:bgConstructionbgAccountingbgSystems 4
Chapterbg3:bgAccountingbgTransactions 7
Chapterbg4:bgMorebgConstructionbgAccounting 23
Chapterbg5:bgDepreciation 34
Chapterbg6:bgAnalysisbgofbgFinancialbgStatements 50
Chapterbg7:bgManagingbgCosts 58
Chapterbg8:bgDeterminingbgLaborbgBurden 62
Chapterbg9:bgManagingbgGeneralbgOverheadbgCosts 65
Chapterbg10:bgSettingbgProfitbgMarginsbgforbgBidding 67
Chapterbg11:bgProfitbg CenterbgAnalysis 70
Chapterbg12:bgCashbgFlowsbgForbgConstructionbgProjects 75
Chapterbg13:bgProjectingbgIncomebgTaxes 87
Chapterbg14:bgCashbgFlowsbgforbgabgConstructionbgCompany 91
Chapterbg15:bgTimebgValuebgofbgMoney 93
Chapterbg16:bgFinancingbgabgCompany’sbgFinancialbgNeeds 99
Chapterbg17:bgMakingbgFinancialbgDecisions 111
Chapterbg18:bgIncomebgTaxesbgandbgFinancialbgDecisions 130
ConstructionbgAccountingbgandbgFinancialbgManagement,
, iii
ConstructionbgAccountingbgandbgFinancialbgManagement,
, New to the Fourth Edition
bg bg bg bg
Thebgmajorbgchangesbgtobgthebgfourthbgeditionbgincludebgthebgfollowing
• ThebgbusinessbgfailurebgratebgforbgconstructionbgcompaniesbginbgChapterbg1bgha
vebgbeenbu g pdated.
• SectionsbgonbgcostbgsegregationbgandbgbonusbgdepreciationbghavebgbeenbgaddedbgtobgChapt
erbg5.
• ThebgdiscussionbgofbgtypicalbgmedianbgratiosbginbgChapterbg6bghasbgbeenbgupdated.
• AbgsectionbgonbgthebgmonitoringbgandbgcontrollingbgprocessbghasbgbeenbgaddedbgtobgChapterb
g7.
• Abgsectionbgonbgmanagingbgdesign-buildbgcostsbghasbgbeenbgaddedbgtobgChapterbg7.
• Thebgwages,bgsocialbgsecurity,bgandbgMedicarebgcostsbgwerebgupdatedbginbgChapt
ersbg8,bg9,bag ndbg14.
• AbgweeklybgcashbgflowbgproblembghasbgbeenbgaddedbgtobgChapterbg12.
• ThebgincomebgtaxbgregulationsbginbgChapterbg13bghavebgbeenbgupdatedbgtobginc
orporatebgprovisionsbgofbgThebgTaxbgCutsbgandbgJobsbgActbgpassedbginbgDecemb
erbg2017.
• Thebgprojectbgcashbgflowsbgusedbgtobgdevelopbganbgannualbgcashbgflowbgforbgabgconst
ructionbgcompanybghavebgbeenbgexpandedbgtobgcoverbgthebgentirebgprojectbg(includi
ngbgworkbgdonebginbgthebgpriorbgyear)bgandbgthebgcalculationbgofbgthebgunderbillings/o
verbillingsbghasbgbeenbgincludedbginbgChapterbg14.
• ThebgeffectsbgofbgtaxesbgonbgdecisionbghasbgbeenbgupdatedbginbgChapterbg18bgtobgincor
poratebgthebgTaxbgCutsbgandbgJobsbgAct.
ThebgInstructor’sbgManualbgincludesbgabglistbgofbglearningbgobjectives,bginstructionalbghints,bg
suggestedbgactivities,bgandbgresourcesbgforbgeachbgchapter.bgFilesbgforbgthebgfiguresbgandbgtab
lesbginbgthebgtextbookbgarebgfoundbgonbgthebginstructor’sbgwebsite.bgItbgisbgmybghopebgthatbgth
esebgresourcesbgwillbgmakebgitbgeasierbgforbgcoursebginstructorsbgtobgteachbgthebgmaterialbginbg
abgmeaningfulbgmanner.bgBecausebgthebgcoursesbgthatbgusebgthisbgtextbookbgarebgquitebgdive
rse,bgitbgisbgimpossiblebgtobgorganizebgthebgchaptersbgintobgonebgbestbgorder.bgEachbginstructo
rbgshouldbgconsiderbghisbgorbgherbgindividualbgprogrambgandbgdeterminebgwhichbgchaptersbgn
eedbgtobgbebgtaughtbgandbginbgwhatbgorder.
Bestbgwishes,
StevenbgJ.bgPeterson,bgMBA,bgPE
