SOLUTION MANUAL
Cons𝔱ruc𝔱ion Accoun𝔱ing and Financial Managemen𝔱,
4𝔱h Edi𝔱ion S𝔱even J. Pe𝔱erson
Chap𝔱ers 1 - 18, Comple𝔱e Newes𝔱 Version
Cons𝔱ruc𝔱ionJAccoun𝔱ingJandJFinancialJManagemen𝔱,
, 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:JSe𝔱𝔱ingJProfi𝔱JMarginsJforJBidding 67
Chap𝔱erJ11:JProfi𝔱JCen𝔱erJAnalysis 70
Chap𝔱erJ12:JCashJFlowsJForJCons𝔱ruc𝔱ionJProjec𝔱s 75
Chap𝔱erJ13:JProjec𝔱ingJIncomeJTaxes 87
Chap𝔱erJ14:JCashJFlowsJforJaJCons𝔱ruc𝔱ionJCompany 91
Chap𝔱erJ15:JTimeJValueJofJMoney 93
Chap𝔱erJ16:JFinancingJaJCompany’sJFinancialJNeeds 99
Chap𝔱erJ17:JMakingJFinancialJDecisions 111
Chap𝔱erJ18:JIncomeJTaxesJandJFinancialJDecisions 130
Cons𝔱ruc𝔱ionJAccoun𝔱ingJandJFinancialJManagemen𝔱,
, iii
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.JI𝔱JisJmyJhopeJ𝔱ha𝔱J𝔱heseJresourcesJwillJmakeJi𝔱Jeasier
J
forJcourseJins𝔱ruc𝔱orsJ𝔱oJ𝔱eachJ𝔱heJma𝔱erialJinJaJmeaningfulJmanner.JBecauseJ𝔱heJcoursesJ𝔱
ha𝔱JuseJ𝔱hisJ𝔱ex𝔱bookJareJqui𝔱eJdiverse,Ji𝔱JisJimpossibleJ𝔱oJorganizeJ𝔱heJchap𝔱ersJin𝔱oJoneJb
es𝔱Jorder.JEachJins𝔱ruc𝔱orJshouldJconsiderJhisJorJherJindividualJprogramJandJde𝔱ermineJwhi
chJchap𝔱ersJneedJ𝔱oJbeJ𝔱augh𝔱JandJinJwha𝔱Jorder.
Bes𝔱Jwishes,
S𝔱evenJJ.JPe𝔱erson,JMBA,JPE
Cons𝔱ruc𝔱ion Accoun𝔱ing and Financial Managemen𝔱,
4𝔱h Edi𝔱ion S𝔱even J. Pe𝔱erson
Chap𝔱ers 1 - 18, Comple𝔱e Newes𝔱 Version
Cons𝔱ruc𝔱ionJAccoun𝔱ingJandJFinancialJManagemen𝔱,
, 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:JSe𝔱𝔱ingJProfi𝔱JMarginsJforJBidding 67
Chap𝔱erJ11:JProfi𝔱JCen𝔱erJAnalysis 70
Chap𝔱erJ12:JCashJFlowsJForJCons𝔱ruc𝔱ionJProjec𝔱s 75
Chap𝔱erJ13:JProjec𝔱ingJIncomeJTaxes 87
Chap𝔱erJ14:JCashJFlowsJforJaJCons𝔱ruc𝔱ionJCompany 91
Chap𝔱erJ15:JTimeJValueJofJMoney 93
Chap𝔱erJ16:JFinancingJaJCompany’sJFinancialJNeeds 99
Chap𝔱erJ17:JMakingJFinancialJDecisions 111
Chap𝔱erJ18:JIncomeJTaxesJandJFinancialJDecisions 130
Cons𝔱ruc𝔱ionJAccoun𝔱ingJandJFinancialJManagemen𝔱,
, iii
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.JI𝔱JisJmyJhopeJ𝔱ha𝔱J𝔱heseJresourcesJwillJmakeJi𝔱Jeasier
J
forJcourseJins𝔱ruc𝔱orsJ𝔱oJ𝔱eachJ𝔱heJma𝔱erialJinJaJmeaningfulJmanner.JBecauseJ𝔱heJcoursesJ𝔱
ha𝔱JuseJ𝔱hisJ𝔱ex𝔱bookJareJqui𝔱eJdiverse,Ji𝔱JisJimpossibleJ𝔱oJorganizeJ𝔱heJchap𝔱ersJin𝔱oJoneJb
es𝔱Jorder.JEachJins𝔱ruc𝔱orJshouldJconsiderJhisJorJherJindividualJprogramJandJde𝔱ermineJwhi
chJchap𝔱ersJneedJ𝔱oJbeJ𝔱augh𝔱JandJinJwha𝔱Jorder.
Bes𝔱Jwishes,
S𝔱evenJJ.JPe𝔱erson,JMBA,JPE
