SOLUTION MANUAL
Construction Accounting and Financial Management,
4th Edition Steven J. Peterson
Chapters 1 - 18, Complete Newest Version
ConstructionxAccountingxandxFinancialxManagement,
, CONTENTS
NewxtoxthexFourthxEdition 1
Chapterx1:xConstructionxFinancialxManagement 2
Chapterx2:xConstructionxAccountingxSystems 4
Chapterx3:xAccountingxTransactions 7
Chapterx4:xMorexConstructionxAccounting 23
Chapterx5:xDepreciation 34
Chapterx6:xAnalysisxofxFinancialxStatements 50
Chapterx7:xManagingxCosts 58
Chapterx8:xDeterminingxLaborxBurden 62
Chapterx9:xManagingxGeneralxOverheadxCosts 65
Chapterx10:xSettingxProfitxMarginsxforxBidding 67
Chapterx11:xProfitx CenterxAnalysis 70
Chapterx12:xCashxFlowsxForxConstructionxProjects 75
Chapterx13:xProjectingxIncomexTaxes 87
Chapterx14:xCashxFlowsxforxaxConstructionxCompany 91
Chapterx15:xTimexValuexofxMoney 93
Chapterx16:xFinancingxaxCompany’sxFinancialxNeeds 99
Chapterx17:xMakingxFinancialxDecisions 111
Chapterx18:xIncomexTaxesxandxFinancialxDecisions 130
ConstructionxAccountingxandxFinancialxManagement,
, iii
ConstructionxAccountingxandxFinancialxManagement,
, New to the Fourth Edition
x x x x
Thexmajorxchangesxtoxthexfourthxeditionxincludexthexfollowing
ThexbusinessxfailurexratexforxconstructionxcompaniesxinxChapterx1xhavexbee
nxupdated.
SectionsxonxcostxsegregationxandxbonusxdepreciationxhavexbeenxaddedxtoxChapterx5.
ThexdiscussionxofxtypicalxmedianxratiosxinxChapterx6xhasxbeenxupdated.
AxsectionxonxthexmonitoringxandxcontrollingxprocessxhasxbeenxaddedxtoxChapterx7.
Axsectionxonxmanagingxdesign-buildxcostsxhasxbeenxaddedxtoxChapterx7.
Thexwages,xsocialxsecurity,xandxMedicarexcostsxwerexupdatedxinxChaptersx8,x9
,xandx14.
AxweeklyxcashxflowxproblemxhasxbeenxaddedxtoxChapterx12.
ThexincomextaxxregulationsxinxChapterx13xhavexbeenxupdatedxtoxincorpora
texprovisionsxofxThexTaxxCutsxandxJobsxActxpassedxinxDecemberx2017.
Thexprojectxcashxflowsxusedxtoxdevelopxanxannualxcashxflowxforxaxconstructionxc
ompanyxhavexbeenxexpandedxtoxcoverxthexentirexprojectx(includingxworkxdonexi
nxthexpriorxyear)xandxthexcalculationxofxthexunderbillings/overbillingsxhasxbeenxin
cludedxinxChapterx14.
ThexeffectsxofxtaxesxonxdecisionxhasxbeenxupdatedxinxChapterx18xtoxincorporatext
hexTaxxCutsxandxJobsxAct.
ThexInstructor’sxManualxincludesxaxlistxofxlearningxobjectives,xinstructionalxhints,xsuggest
edxactivities,xandxresourcesxforxeachxchapter.xFilesxforxthexfiguresxandxtablesxinxthextextbo
okxarexfoundxonxthexinstructor’sxwebsite.xItxisxmyxhopexthatxthesexresourcesxwillxmakexitx
easierxforxcoursexinstructorsxtoxteachxthexmaterialxinxaxmeaningfulxmanner.xBecausexthex
coursesxthatxusexthisxtextbookxarexquitexdiverse,xitxisximpossiblextoxorganizexthexchaptersx
intoxonexbestxorder.xEachxinstructorxshouldxconsiderxhisxorxherxindividualxprogramxandxde
terminexwhichxchaptersxneedxtox bextaughtxandxinxwhatxorder.
Bestxwishes,
StevenxJ.xPeterson,xMBA,xPE
Construction Accounting and Financial Management,
4th Edition Steven J. Peterson
Chapters 1 - 18, Complete Newest Version
ConstructionxAccountingxandxFinancialxManagement,
, CONTENTS
NewxtoxthexFourthxEdition 1
Chapterx1:xConstructionxFinancialxManagement 2
Chapterx2:xConstructionxAccountingxSystems 4
Chapterx3:xAccountingxTransactions 7
Chapterx4:xMorexConstructionxAccounting 23
Chapterx5:xDepreciation 34
Chapterx6:xAnalysisxofxFinancialxStatements 50
Chapterx7:xManagingxCosts 58
Chapterx8:xDeterminingxLaborxBurden 62
Chapterx9:xManagingxGeneralxOverheadxCosts 65
Chapterx10:xSettingxProfitxMarginsxforxBidding 67
Chapterx11:xProfitx CenterxAnalysis 70
Chapterx12:xCashxFlowsxForxConstructionxProjects 75
Chapterx13:xProjectingxIncomexTaxes 87
Chapterx14:xCashxFlowsxforxaxConstructionxCompany 91
Chapterx15:xTimexValuexofxMoney 93
Chapterx16:xFinancingxaxCompany’sxFinancialxNeeds 99
Chapterx17:xMakingxFinancialxDecisions 111
Chapterx18:xIncomexTaxesxandxFinancialxDecisions 130
ConstructionxAccountingxandxFinancialxManagement,
, iii
ConstructionxAccountingxandxFinancialxManagement,
, New to the Fourth Edition
x x x x
Thexmajorxchangesxtoxthexfourthxeditionxincludexthexfollowing
ThexbusinessxfailurexratexforxconstructionxcompaniesxinxChapterx1xhavexbee
nxupdated.
SectionsxonxcostxsegregationxandxbonusxdepreciationxhavexbeenxaddedxtoxChapterx5.
ThexdiscussionxofxtypicalxmedianxratiosxinxChapterx6xhasxbeenxupdated.
AxsectionxonxthexmonitoringxandxcontrollingxprocessxhasxbeenxaddedxtoxChapterx7.
Axsectionxonxmanagingxdesign-buildxcostsxhasxbeenxaddedxtoxChapterx7.
Thexwages,xsocialxsecurity,xandxMedicarexcostsxwerexupdatedxinxChaptersx8,x9
,xandx14.
AxweeklyxcashxflowxproblemxhasxbeenxaddedxtoxChapterx12.
ThexincomextaxxregulationsxinxChapterx13xhavexbeenxupdatedxtoxincorpora
texprovisionsxofxThexTaxxCutsxandxJobsxActxpassedxinxDecemberx2017.
Thexprojectxcashxflowsxusedxtoxdevelopxanxannualxcashxflowxforxaxconstructionxc
ompanyxhavexbeenxexpandedxtoxcoverxthexentirexprojectx(includingxworkxdonexi
nxthexpriorxyear)xandxthexcalculationxofxthexunderbillings/overbillingsxhasxbeenxin
cludedxinxChapterx14.
ThexeffectsxofxtaxesxonxdecisionxhasxbeenxupdatedxinxChapterx18xtoxincorporatext
hexTaxxCutsxandxJobsxAct.
ThexInstructor’sxManualxincludesxaxlistxofxlearningxobjectives,xinstructionalxhints,xsuggest
edxactivities,xandxresourcesxforxeachxchapter.xFilesxforxthexfiguresxandxtablesxinxthextextbo
okxarexfoundxonxthexinstructor’sxwebsite.xItxisxmyxhopexthatxthesexresourcesxwillxmakexitx
easierxforxcoursexinstructorsxtoxteachxthexmaterialxinxaxmeaningfulxmanner.xBecausexthex
coursesxthatxusexthisxtextbookxarexquitexdiverse,xitxisximpossiblextoxorganizexthexchaptersx
intoxonexbestxorder.xEachxinstructorxshouldxconsiderxhisxorxherxindividualxprogramxandxde
terminexwhichxchaptersxneedxtox bextaughtxandxinxwhatxorder.
Bestxwishes,
StevenxJ.xPeterson,xMBA,xPE
