Solution Manual for Construction Accounting and Financial Management 4th Edition by Steven J. Peterson | Chapters 1–18 Complete A+

SOLUTION MANUAL
Construction Accounting and Financial Management,

4th Edition Steven J. Peterson
Chapters 1 - 18, Complete Newest Version




Construction Accounting and Financial Management,

, CONTENTS
New to the Fourth Edition 1

Chapter 1: Construction Financial Management 2

Chapter 2: Construction Accounting Systems 4

Chapter 3: Accounting Transactions 7

Chapter 4: More Construction Accounting 23

Chapter 5: Depreciation 34

Chapter 6: Analysis of Financial Statements 50

Chapter 7: Managing Costs 58

Chapter 8: Determining Labor Burden 62

Chapter 9: Managing General Overhead Costs 65

Chapter 10: Setting Profit Margins for Bidding 67

Chapter 11: Profit Center Analysis 70

Chapter 12: Cash Flows For Construction Projects 75

Chapter 13: Projecting Income Taxes 87

Chapter 14: Cash Flows for a Construction Company 91

Chapter 15: Time Value of Money 93

Chapter 16: Financing a Company’s Financial Needs 99

Chapter 17: Making Financial Decisions 111

Chapter 18: Income Taxes and Financial Decisions 130




Construction Accounting and Financial Management,

, iii




Construction Accounting and Financial Management,

, New to the Fourth Edition
The major changes to the fourth edition include the following
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 The business failure rate for construction companies in Chapter 1
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have beenupdated.
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 Sections on cost segregation and bonus depreciation have been added to Chapter
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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
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Chapters 8, 9,and 14.
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 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
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incorporateprovisions of The Tax Cuts and Jobs Act passed in
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December 2017.
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 The project cash flows used to develop an annual cash flow for a
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construction company have been expanded to cover the entire project
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(including work done inthe prior year) and the calculation of the
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underbillings/overbillings has been included in Chapter 14.
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 The effects of taxes on decision has been updated in Chapter 18 to
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incorporate theTax Cuts and Jobs Act.
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The Instructor’s Manual includes a list of learning objectives, instructional
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hints, suggested activities, and resources for each chapter. Files for the figures
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and tables in the textbook are found on the instructor’s website. It is my hope
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that these resources will make it easier for course instructors to teach the
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material in a meaningful manner. Because the courses that use this textbook are
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quite diverse, it is impossible to organize the chapters into one best order. Each
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instructor should consider his or her individual program and determine which
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chapters need to be taught and in what order.
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Best wishes, b




Steven J. Peterson, MBA, PE b b b b