Solution Manual For CONSTRUCTION ACCOUNTING AND FINANCIAL MANAGEMENT Fourth Edition Steven J. Peterson, MBA, PE | All Chapters | Latest & Updated Version 2025

SOLUTION MANUAL For Construction

Accounting and Financial Management, 4th Edition

Steven J. Peterson |All Chapters 1 - 18|

, CONTENTS
NewJtoJtheJFourthJEdition 1

ChapterJ1:JConstructionJFinancialJManagement 2

ChapterJ2:JConstructionJAccountingJSystems 4

ChapterJ3:JAccountingJTransactions 7

ChapterJ4:JMoreJConstructionJAccounting 23

ChapterJ5:JDepreciation 34

ChapterJ6:JAnalysisJofJFinancialJStatements 50

ChapterJ7:JManagingJCosts 58

ChapterJ8:JDeterminingJLaborJBurden 62

ChapterJ9:JManagingJGeneralJOverheadJCosts 65

ChapterJ10:JSettingJProfitJ MarginsJforJBidding 67

ChapterJ11:JProfitJ CenterJAnalysis 70

ChapterJ12:JCashJFlowsJForJConstructionJProjects 75

ChapterJ13:JProjectingJIncomeJTaxes 87

ChapterJ14:JCashJFlowsJforJaJConstructionJCompany 91

ChapterJ15:JTimeJValueJofJMoney 93

ChapterJ16:JFinancingJaJCompany’sJFinancialJNeeds 99

ChapterJ17:JMakingJFinancialJDecisions 111

ChapterJ18:JIncomeJTaxesJandJFinancialJDecisions 130




ConstructionJAccountingJandJFinancialJManagement,

, New to the Fourth Edition
J J J J




TheJmajorJchangesJtoJtheJfourthJeditionJincludeJtheJfollowing
 TheJbusinessJfailureJrateJforJconstructionJcompaniesJinJChapterJ1JhaveJbeenJ
updated.
 SectionsJonJcostJsegregationJandJbonusJdepreciationJhaveJbeenJaddedJtoJChapterJ5.
 TheJdiscussionJofJtypicalJmedianJratiosJinJChapterJ6JhasJbeenJupdated.
 AJsectionJonJtheJmonitoringJandJcontrollingJprocessJhasJbeenJaddedJtoJChapterJ7.
 AJsectionJonJmanagingJdesign-buildJcostsJhasJbeenJaddedJtoJChapterJ7.
 TheJwages,JsocialJsecurity,JandJMedicareJcostsJwereJupdatedJinJChaptersJ8,J9,Ja
ndJ14.
 AJweeklyJcashJflowJproblemJhasJbeenJaddedJtoJChapterJ12.
 TheJincomeJtaxJregulationsJinJChapterJ13JhaveJbeenJupdatedJtoJincorporateJ
provisionsJofJTheJTaxJCutsJandJJobsJActJpassedJinJDecemberJ2017.
 TheJprojectJcashJflowsJusedJtoJdevelopJanJannualJcashJflowJforJaJconstructionJco
mpanyJhaveJbeenJexpandedJtoJcoverJtheJentireJprojectJ(includingJworkJdoneJinJth
eJpriorJyear)JandJtheJcalculationJofJtheJunderbillings/overbillingsJhasJbeenJinclud
edJinJChapterJ14.
 TheJeffectsJofJtaxesJonJdecisionJhasJbeenJupdatedJinJChapterJ18JtoJincorporateJtheJ
TaxJCutsJandJJobsJAct.
TheJInstructor’sJManualJincludesJaJlistJofJlearningJobjectives,JinstructionalJhints,Jsuggeste
dJactivities,JandJresourcesJforJeachJchapter.JFilesJforJtheJfiguresJandJtablesJinJtheJtextbookJ
areJfoundJonJtheJinstructor’sJwebsite.JItJisJmyJhopeJthatJtheseJresourcesJwillJmakeJitJeasierJ
forJcourseJinstructorsJtoJteachJtheJmaterialJinJaJmeaningfulJmanner.JBecauseJtheJcoursesJt
hatJuseJthisJtextbookJareJquiteJdiverse,JitJisJimpossibleJtoJorganizeJtheJchaptersJintoJoneJb
estJorder.JEachJinstructorJshouldJconsiderJhisJorJherJindividualJprogramJandJdetermineJwhi
chJchaptersJneedJtoJ beJtaughtJandJinJwhatJorder.
BestJwishes,
StevenJJ.JPeterson,JMBA,JPE

, Chapter 1: Construction Financial Management
J J J J




LearningJObjectives
AtJtheJcompletionJofJthisJchapterJtheJstudentJshouldJbeJableJto:
 ExplainJwhyJfinancialJmanagementJisJsoJimportantJtoJaJconstructionJcompany.
 ExplainJwhyJfinancialJmanagementJ isJdifferentJforJconstructionJcompaniesJthanJforJ
mostJotherJindustries.
 UnderstandJthatJallJmanagerialJemployeesJfromJtheJownerJtoJtheJcrewJforeperso
nJplayJaJroleJinJfinancialJmanagementJofJaJconstructionJcompany.


InstructionalJHints
 CompareJaJconstructionJcompanyJtoJaJmanufacturingJplant.JEmphasizeJtheJdiffe
rencesJbetweenJaJconstructionJcompanyJandJaJmanufacturingJplant,Jparticularly
:JconstructionJcompaniesJbuildJuniqueJproductsJandJtheJequipmentJisJnotJusuallyJ
stationaryJatJsingleJlocation.JTheseJareJtheJreasonsJaJconstructionJcompanyJnee
dsJaJjobJcostJsystemJandJanJequipmentJcostJsystem.


Activities
 InviteJaJfinancialJmanagerJ(forJexample,JanJaccountantJorJgeneralJmanager)JfromJaJ
constructionJcompanyJtoJyourJclassJtoJdiscussJtheirJroleJasJaJ financialJmanager.
 HaveJeachJstudentJinterviewJaJmanagementJemployeeJforJaJconstructionJcompany
.JTheJinterviewsJshouldJincludeJowners,JprojectJmanagers,Jsuperintendents,JandJfo
repersons.JEachJstudentJisJtoJfindJoutJhowJtheJemployeeJcontributesJtoJtheJfinanci
alJmanagementJofJtheJcompany.JDiscussJtheirJ findingsJinJclass.


InstructionJResources
 TheJfiguresJfromJthisJchapterJinJelectronicJformatJandJPowerPointJslidesJcanJbeJf
oundJatJtheJinstructor’sJwebsite.
 DataJonJconstructionJfailuresJcanJbeJobtainedJfromJtheJ SuretyJInformationJOfficeJ(
www.sio.org).
 CurrentJdataJonJconstructionJcompanyJfailuresJcanJbeJfoundJatJhttp://www.censu
s.gov/ces/dataproducts/bds/data_firm.html.JTheJmostJusefulJdataJcomesJfromJre
portsJthatJincludeJtheJsectorJ(e.g.,JSector,JFirmJAgeJbyJSector,JandJFirmJSizeJbyJSect
or)JbecauseJconstructionJcanJbeJseparatedJfromJotherJindustries.