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