SOLUTION MANUAL s
Construction Accounting and Financial Management,
s s s s
4th Edition Steven J. Peterson
s s s s
Chapters 1 - 18, Complete Newest Version
s s s s s s
Construction Accounting and Financial Management,
s s s s
, CONTENTS
New to the Fourth Edition
s s s s 1
Chapter 1: Construction Financial Management
s s s s 2
Chapter 2: Construction Accounting Systems
s s s s 4
Chapter 3: Accounting Transactions
s s s 7
Chapter 4: More Construction Accounting
s s s s 23
Chapter 5: Depreciation
s s 34
Chapter 6: Analysis of Financial Statements
s s s s s 50
Chapter 7: Managing Costs
s s s 58
Chapter 8: Determining Labor Burden
s s s s 62
Chapter 9: Managing General Overhead Costs
s s s s s 65
Chapter 10: Setting Profit Margins for Bidding
s s s s s s 67
Chapter 11: Profit Center Analysis
s s s s 70
Chapter 12: Cash Flows For Construction Projects
s s s s s s 75
Chapter 13: Projecting Income Taxes
s s s s 87
Chapter 14: Cash Flows for a Construction Company
s s s s s s s 91
Chapter 15: Time Value of Money
s s s s s 93
Chapter 16: Financing a Company’s Financial Needs
s s s s s s 99
Chapter 17: Making Financial Decisions
s s s s 111
Chapter 18: Income Taxes and Financial Decisions
s s s s s s 130
Construction Accounting and Financial Management, s s s s
, iii
Construction Accounting and Financial Management,
s s s s
, New to the Fourth Edition s s s s
The major changes to the fourth edition include the following
s s s s s s s s s
• The business failure rate for construction companies in Chapter 1 have been
s s s s s s s s s s s
updated.
s
• Sections on cost segregation and bonus depreciation have been added to Chapter 5.
s s s s s s s s s s s s
• The discussion of typical median ratios in Chapter 6 has been updated.
s s s s s s s s s s s
• A section on the monitoring and controlling process has been added to Chapter 7.
s s s s s s s s s s s s s
• A section on managing design-build costs has been added to Chapter 7.
s s s s s s s s s s s
• The wages, social security, and Medicare costs were updated in Chapters 8, 9,
s s s s s s s s s s s s
and 14. s s
• A weekly cash flow problem has been added to Chapter 12.
s s s s s s s s s s
• The income tax regulations in Chapter 13 have been updated to incorporate
s s s s s s s s s s s
provisions of The Tax Cuts and Jobs Act passed in December 2017.
s s s s s s s s s s s s
• The project cash flows used to develop an annual cash flow for a construction
s s s s s s s s s s s s s
company have been expanded to cover the entire project (including work done in
s s s s s s s s s s s s s
the prior year) and the calculation of the underbillings/overbillings has been
s s s s s s s s s s s
included in Chapter 14.
s s s s
• The effects of taxes on decision has been updated in Chapter 18 to incorporatethe
s s s s s s s s s s s s s s
Tax Cuts and Jobs Act.
s s s s s
The Instructor’s Manual includes a list of learning objectives, instructional hints, suggested
s s s s s s s s s s s
activities, and resources for each chapter. Files for the figures and tables in the textbook are
s s s s s s s s s s s s s s s s
found on the instructor’s website. It is my hope that these resources will make it easier for
s s s s s s s s s s s s s s s s s
course instructors to teach the material in a meaningful manner. Because the courses that
s s s s s s s s s s s s s s
use this textbook are quite diverse, it is impossible to organize the chapters into one best
s s s s s s s s s s s s s s s s
order. Each instructor should consider his or her individual program and determine which
s s s s s s s s s s s s s
chapters need to be taught and in what order.
s s s s s s s s s
Best wishes, s
Steven J. Peterson, MBA, PE s s s s
Construction Accounting and Financial Management,
s s s s
4th Edition Steven J. Peterson
s s s s
Chapters 1 - 18, Complete Newest Version
s s s s s s
Construction Accounting and Financial Management,
s s s s
, CONTENTS
New to the Fourth Edition
s s s s 1
Chapter 1: Construction Financial Management
s s s s 2
Chapter 2: Construction Accounting Systems
s s s s 4
Chapter 3: Accounting Transactions
s s s 7
Chapter 4: More Construction Accounting
s s s s 23
Chapter 5: Depreciation
s s 34
Chapter 6: Analysis of Financial Statements
s s s s s 50
Chapter 7: Managing Costs
s s s 58
Chapter 8: Determining Labor Burden
s s s s 62
Chapter 9: Managing General Overhead Costs
s s s s s 65
Chapter 10: Setting Profit Margins for Bidding
s s s s s s 67
Chapter 11: Profit Center Analysis
s s s s 70
Chapter 12: Cash Flows For Construction Projects
s s s s s s 75
Chapter 13: Projecting Income Taxes
s s s s 87
Chapter 14: Cash Flows for a Construction Company
s s s s s s s 91
Chapter 15: Time Value of Money
s s s s s 93
Chapter 16: Financing a Company’s Financial Needs
s s s s s s 99
Chapter 17: Making Financial Decisions
s s s s 111
Chapter 18: Income Taxes and Financial Decisions
s s s s s s 130
Construction Accounting and Financial Management, s s s s
, iii
Construction Accounting and Financial Management,
s s s s
, New to the Fourth Edition s s s s
The major changes to the fourth edition include the following
s s s s s s s s s
• The business failure rate for construction companies in Chapter 1 have been
s s s s s s s s s s s
updated.
s
• Sections on cost segregation and bonus depreciation have been added to Chapter 5.
s s s s s s s s s s s s
• The discussion of typical median ratios in Chapter 6 has been updated.
s s s s s s s s s s s
• A section on the monitoring and controlling process has been added to Chapter 7.
s s s s s s s s s s s s s
• A section on managing design-build costs has been added to Chapter 7.
s s s s s s s s s s s
• The wages, social security, and Medicare costs were updated in Chapters 8, 9,
s s s s s s s s s s s s
and 14. s s
• A weekly cash flow problem has been added to Chapter 12.
s s s s s s s s s s
• The income tax regulations in Chapter 13 have been updated to incorporate
s s s s s s s s s s s
provisions of The Tax Cuts and Jobs Act passed in December 2017.
s s s s s s s s s s s s
• The project cash flows used to develop an annual cash flow for a construction
s s s s s s s s s s s s s
company have been expanded to cover the entire project (including work done in
s s s s s s s s s s s s s
the prior year) and the calculation of the underbillings/overbillings has been
s s s s s s s s s s s
included in Chapter 14.
s s s s
• The effects of taxes on decision has been updated in Chapter 18 to incorporatethe
s s s s s s s s s s s s s s
Tax Cuts and Jobs Act.
s s s s s
The Instructor’s Manual includes a list of learning objectives, instructional hints, suggested
s s s s s s s s s s s
activities, and resources for each chapter. Files for the figures and tables in the textbook are
s s s s s s s s s s s s s s s s
found on the instructor’s website. It is my hope that these resources will make it easier for
s s s s s s s s s s s s s s s s s
course instructors to teach the material in a meaningful manner. Because the courses that
s s s s s s s s s s s s s s
use this textbook are quite diverse, it is impossible to organize the chapters into one best
s s s s s s s s s s s s s s s s
order. Each instructor should consider his or her individual program and determine which
s s s s s s s s s s s s s
chapters need to be taught and in what order.
s s s s s s s s s
Best wishes, s
Steven J. Peterson, MBA, PE s s s s
