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
TheAmajorAchangesAtoAtheAfourthAeditionAincludeAtheAfollowing
• TheAbusinessAfailureArateAforAconstructionAcompaniesAinAChapterA1AhaveAbe
enAupdated.
• SectionsAonAcostAsegregationAandAbonusAdepreciationAhaveAbeenAaddedAtoAChapterA5.
• TheAdiscussionAofAtypicalAmedianAratiosAinAChapterA6AhasAbeenAupdated.
• AAsectionAonAtheAmonitoringAandAcontrollingAprocessAhasAbeenAaddedAtoAChapterA7.
• AAsectionAonAmanagingAdesign-buildAcostsAhasAbeenAaddedAtoAChapterA7.
• TheAwages,AsocialAsecurity,AandAMedicareAcostsAwereAupdatedAinAChaptersA8,A
9,AandA14.
• AAweeklyAcashAflowAproblemAhasAbeenAaddedAtoAChapterA12.
• TheAincomeAtaxAregulationsAinAChapterA13AhaveAbeenAupdatedAtoAincorpora
teAprovisionsAofATheATaxACutsAandAJobsAActApassedAinADecemberA2017.
• TheAprojectAcashAflowsAusedAtoAdevelopAanAannualAcashAflowAforAaAconstructionAc
ompanyAhaveAbeenAexpandedAtoAcoverAtheAentireAprojectA(includingAworkAdoneAi
nAtheApriorAyear)AandAtheAcalculationAofAtheAunderbillings/overbillingsAhasAbeenAi
ncludedAinAChapterA14.
• TheAeffectsAofAtaxesAonAdecisionAhasAbeenAupdatedAinAChapterA18AtoAincorporateAt
heATaxACutsAandAJobsAAct.
TheAInstructor’sAManualAincludesAaAlistAofAlearningAobjectives,AinstructionalAhints,Asuggest
edAactivities,AandAresourcesAforAeachAchapter.AFilesAforAtheAfiguresAandAtablesAinAtheAtextb
ookAareAfoundAonAtheAinstructor’sAwebsite.AItAisAmyAhopeAthatAtheseAresourcesAwillAmakeAi
tAeasierAforAcourseAinstructorsAtoAteachAtheAmaterialAinAaAmeaningfulAmanner.ABecauseAth
eAcoursesAthatAuseAthisAtextbookAareAquiteAdiverse,AitAisAimpossibleAtoAorganizeAtheAchapt
ersAintoAoneAbestAorder.AEachAinstructorAshouldAconsiderAhisAorAherAindividualAprogramAan
dAdetermineAwhichAchaptersAneedAtoAbeAtaughtAandAinAwhatAorder.
BestAwishes,
StevenAJ.APeterson,AMBA,APE
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
TheAmajorAchangesAtoAtheAfourthAeditionAincludeAtheAfollowing
• TheAbusinessAfailureArateAforAconstructionAcompaniesAinAChapterA1AhaveAbe
enAupdated.
• SectionsAonAcostAsegregationAandAbonusAdepreciationAhaveAbeenAaddedAtoAChapterA5.
• TheAdiscussionAofAtypicalAmedianAratiosAinAChapterA6AhasAbeenAupdated.
• AAsectionAonAtheAmonitoringAandAcontrollingAprocessAhasAbeenAaddedAtoAChapterA7.
• AAsectionAonAmanagingAdesign-buildAcostsAhasAbeenAaddedAtoAChapterA7.
• TheAwages,AsocialAsecurity,AandAMedicareAcostsAwereAupdatedAinAChaptersA8,A
9,AandA14.
• AAweeklyAcashAflowAproblemAhasAbeenAaddedAtoAChapterA12.
• TheAincomeAtaxAregulationsAinAChapterA13AhaveAbeenAupdatedAtoAincorpora
teAprovisionsAofATheATaxACutsAandAJobsAActApassedAinADecemberA2017.
• TheAprojectAcashAflowsAusedAtoAdevelopAanAannualAcashAflowAforAaAconstructionAc
ompanyAhaveAbeenAexpandedAtoAcoverAtheAentireAprojectA(includingAworkAdoneAi
nAtheApriorAyear)AandAtheAcalculationAofAtheAunderbillings/overbillingsAhasAbeenAi
ncludedAinAChapterA14.
• TheAeffectsAofAtaxesAonAdecisionAhasAbeenAupdatedAinAChapterA18AtoAincorporateAt
heATaxACutsAandAJobsAAct.
TheAInstructor’sAManualAincludesAaAlistAofAlearningAobjectives,AinstructionalAhints,Asuggest
edAactivities,AandAresourcesAforAeachAchapter.AFilesAforAtheAfiguresAandAtablesAinAtheAtextb
ookAareAfoundAonAtheAinstructor’sAwebsite.AItAisAmyAhopeAthatAtheseAresourcesAwillAmakeAi
tAeasierAforAcourseAinstructorsAtoAteachAtheAmaterialAinAaAmeaningfulAmanner.ABecauseAth
eAcoursesAthatAuseAthisAtextbookAareAquiteAdiverse,AitAisAimpossibleAtoAorganizeAtheAchapt
ersAintoAoneAbestAorder.AEachAinstructorAshouldAconsiderAhisAorAherAindividualAprogramAan
dAdetermineAwhichAchaptersAneedAtoAbeAtaughtAandAinAwhatAorder.
BestAwishes,
StevenAJ.APeterson,AMBA,APE
