ConstructionhAccountinghandhFinancialhManagement,
4thhEditionhStevenhJ.hPeterson
Chaptersh1h-h18,hCompletehNewesthVersion
ConstructionhAccountinghandhFinancialhManagement,
, CONTENTS
NewhtohthehFourthhEdition 1
Chapterh1:hConstructionhFinancialhManagement 2
Chapterh2:hConstructionhAccountinghSystems 4
Chapterh3:hAccountinghTransactions 7
Chapterh4:hMorehConstructionhAccounting 23
Chapterh5:hDepreciation 34
Chapterh6:hAnalysishofhFinancialhStatements 50
Chapterh7:hManaginghCosts 58
Chapterh8:hDetermininghLaborhBurden 62
Chapterh9:hManaginghGeneralhOverheadhCosts 65
Chapterh10:hSettinghProfithMarginshforhBidding 67
Chapterh11:hProfithCenterhAnalysis 70
Chapterh12:hCashhFlowshForhConstructionhProjects 75
Chapterh13:hProjectinghIncomehTaxes 87
Chapterh14:hCashhFlowshforhahConstructionhCompany 91
Chapterh15:hTimehValuehofhMoney 93
Chapterh16:hFinancinghahCompany’shFinancialhNeeds 99
Chapterh17:hMakinghFinancialhDecisions 111
Chapterh18:hIncomehTaxeshandhFinancialhDecisions 130
ConstructionhAccountinghandhFinancialhManagement,
, iii
ConstructionhAccountinghandhFinancialhManagement,
, NewhtohthehFourthhEdition
Thehmajorhchangeshtohthehfourthheditionhincludehthehfollowing
• ThehbusinesshfailurehratehforhconstructionhcompanieshinhChapterh1hhaveh
beenhupdated.
• SectionshonhcosthsegregationhandhbonushdepreciationhhavehbeenhaddedhtohChapterh5
.
• ThehdiscussionhofhtypicalhmedianhratioshinhChapterh6hhashbeenhupdated.
• AhsectionhonhthehmonitoringhandhcontrollinghprocesshhashbeenhaddedhtohChapterh7.
• Ahsectionhonhmanaginghdesign-buildhcostshhashbeenhaddedhtohChapterh7.
• Thehwages,hsocialhsecurity,handhMedicarehcostshwerehupdatedhinhChaptersh
8,h9,handh14.
• AhweeklyhcashhflowhproblemhhashbeenhaddedhtohChapterh12.
• ThehincomehtaxhregulationshinhChapterh13hhavehbeenhupdatedhtohincorp
oratehprovisionshofhThehTaxhCutshandhJobshActhpassedhinhDecemberh201
7.
• Thehprojecthcashhflowshusedhtohdevelophanhannualhcashhflowhforhahconstructi
onhcompanyhhavehbeenhexpandedhtohcoverhthehentirehprojecth(includinghwork
hdonehinhthehpriorhyear)handhthehcalculationhofhthehunderbillings/overbillingsh
hashbeenhincludedhinhChapterh14.
• TheheffectshofhtaxeshonhdecisionhhashbeenhupdatedhinhChapterh18htohincorpora
tehthehTaxhCutshandhJobshAct.
ThehInstructor’shManualhincludeshahlisthofhlearninghobjectives,hinstructionalhhints,hsugg
estedhactivities,handhresourceshforheachhchapter.hFileshforhthehfigureshandhtableshinhth
ehtextbookharehfoundhonhthehinstructor’shwebsite.hIthishmyhhopehthaththesehresources
hwillhmakehitheasierhforhcoursehinstructorshtohteachhthehmaterialhinhahmeaningfulhman
ner.hBecausehthehcourseshthathusehthishtextbookharehquitehdiverse,hithishimpossiblehtoh
organizehthehchaptershintohonehbesthorder.hEachhinstructorhshouldhconsiderhhishorhher
hindividualhprogramhandhdeterminehwhichhchaptershneedhtohbehtaughthandhinhwhathor
der.
Besthwishes,
StevenhJ.hPeterson,hMBA,hPE