SOLUTION MANUAL Construction Accounting and Financial Management, 4th Edition Steven J. Peterson Chapters 1 - 18, Complete Newest Version

SOLUTION MANUAL Construction Accounting and Financial Management, 4th
Edition Steven J. Peterson Complete Newest Version Chapters 1 - 18

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New to the Fourth Edition
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Chapter 1: Construction Financial Management
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Chapter 2: Construction Accounting Systems
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Chapter 3: Accounting Transactions
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Chapter 4: More Construction Accounting
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Chapter 5: Depreciation
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Chapter 6: Analysis of Financial Statements
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Chapter 7: Managing Costs
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Chapter 8: Determining Labor Burden
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Chapter 9: Managing General Overhead Costs
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Chapter 10: Setting Profit Margins for Bidding
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Chapter 11: Profit Center Analysis
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Chapter 12: Cash Flows For Construction Projects
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Chapter 13: Projecting Income Taxes
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Chapter 14: Cash Flows for a Construction Company
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Chapter 15: Time Value of Money
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Chapter 16: Financing a Company’s Financial Needs
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Chapter 17: Making Financial Decisions
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Chapter 18: Income Taxes and Financial Decisions
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, New to the Fourth Edition gn gn gn gn




The major changes to the fourth edition include the following
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• The business failure rate for construction companies in Chapter 1 have been
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updated.
• Sections on cost segregation and bonus depreciation have been added to Chapter 5.
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• The discussion of typical median ratios in Chapter 6 has been updated.
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• A section on the monitoring and controlling process has been added to Chapter 7.
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• A section on managing design-build costs has been added to Chapter 7.
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• The wages, social security, and Medicare costs were updated in Chapters 8, 9,
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and 14. gn




• A weekly cash flow problem has been added to Chapter 12.
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• The income tax regulations in Chapter 13 have been updated to incorporate
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provisions of The Tax Cuts and Jobs Act passed in December 2017.
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• The project cash flows used to develop an annual cash flow for a construction co
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mpany have been expanded to cover the entire project (including work done inth
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e prior year) and the calculation of the underbillings/overbillings has been includ
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ed in Chapter 14. gn gn gn




• The effects of taxes on decision has been updated in Chapter 18 to incorporate the
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Tax Cuts and Jobs Act. gn gn gn gn




The Instructor’s Manual includes a list of learning objectives, instructional hints, suggest
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ed activities, and resources for each chapter. Files for the figures and tables in the textboo
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k are found on the instructor’s website. It is my hope that these resources will make it eas
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ier for course instructors to teach the material in a meaningful manner. Because the cours
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es that use this textbook are quite diverse, it is impossible to organize the chapters into on
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e best order. Each instructor should consider his or her individual program and determine
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which chapters need to be taught and in what order.
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Best wishes, gn




Steven J. Peterson, MBA, PE gn gn gn gn

, Chapter 1: Construction Financial Management gn gn gn gn




Learning Objectives gn




At the completion of this chapter the student should be able to:
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• Explain why financial management is so important to a construction company.
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• Explain why financial management is different for construction companies than for
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most other industries.
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• Understand that all managerial employees from the owner to the crew foreperson
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play a role in financial management of a construction company.
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Instructional Hints gn




• Compare a construction company to a manufacturing plant. Emphasize the diffe
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rences between a construction company and a manufacturing plant, particularly:
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gn construction companies build unique products and the equipment isnot usually s
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tationary at single location. These are the reasons a construction company needs
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gn a job cost system and an equipment cost system.
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Activities

• Invite a financial manager (for example, an accountant or general manager) from a
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construction company to your class to discuss their role as a financial manager.
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• Have each student interview a management employee for a construction company.
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The interviews should include owners, project managers, superintendents, and for
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epersons. Each student is to find out how the employee contributes to the financia
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l management of the company. Discuss their findings in class.
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Instruction Resources gn