SOLUTION MANUAL t
Construction Accounting and Financial Management,
t t t t
4th Edition Steven J. Peterson
t t t t
Chapters 1 - 18, Complete Newest Version
t t t t t t
Construction tAccounting tand tFinancial tManagement,
, CONTENTS
New tto tthe tFourth tEdition 1
Chapter t1: tConstruction tFinancial tManagement 2
Chapter t2: tConstruction tAccounting tSystems 4
Chapter t3: tAccounting tTransactions 7
Chapter t4: tMore tConstruction tAccounting 23
Chapter t5: tDepreciation 34
Chapter t6: tAnalysis tof tFinancial tStatements 50
Chapter t7: tManaging tCosts 58
Chapter t8: tDetermining tLabor tBurden 62
Chapter t9: tManaging tGeneral tOverhead tCosts 65
Chapter t10: tSetting tProfit tMargins tfor tBidding 67
Chapter t11: tProfit tCenter tAnalysis 70
Chapter t12: tCash tFlows tFor tConstruction tProjects 75
Chapter t13: tProjecting tIncome tTaxes 87
Chapter t14: tCash tFlows tfor ta tConstruction tCompany 91
Chapter t15: tTime tValue tof tMoney 93
Chapter t16: tFinancing ta tCompany’s tFinancial tNeeds 99
Chapter t17: tMaking tFinancial tDecisions 111
Chapter t18: tIncome tTaxes tand tFinancial tDecisions 130
Construction tAccounting tand tFinancial tManagement,
, iii
Construction tAccounting tand tFinancial tManagement,
, New to the Fourth Edition
t t t t
The tmajor tchanges tto tthe tfourth tedition tinclude tthe tfollowing
The tbusiness tfailure trate tfor tconstruction tcompanies tin tChapter t1 thave
tbeentupdated.
Sections ton tcost tsegregation tand tbonus tdepreciation thave tbeen tadded tto tChapter t5.
The tdiscussion tof ttypical tmedian tratios tin tChapter t6 thas tbeen tupdated.
A tsection ton tthe tmonitoring tand tcontrolling tprocess thas tbeen tadded tto tChapter t7.
A tsection ton tmanaging tdesign-build tcosts thas tbeen tadded tto tChapter t7.
The twages, tsocial tsecurity, tand tMedicare tcosts twere tupdated tin tChapters t8,
t9,tand t14.
A tweekly tcash tflow tproblem thas tbeen tadded tto tChapter t12.
The tincome ttax tregulations tin tChapter t13 thave tbeen tupdated tto
t incorporatetprovisions tof tThe tTax tCuts tand tJobs tAct t passed t in tDecember
t2017.
The tproject tcash tflows tused tto tdevelop tan tannual tcash tflow tfor ta tconstruction
tcompany thave tbeen texpanded tto tcover tthe tentire tproject t(including twork tdone
tintthe tprior tyear) tand tthe tcalculation tof tthe tunderbillings/overbillings thas tbeen
tincluded t in tChapter t14.
The teffects tof ttaxes ton tdecision thas tbeen tupdated tin tChapter t18 tto tincorporate
tthetTax tCuts tand tJobs t Act.
The tInstructor’s tManual tincludes ta tlist tof tlearning tobjectives, tinstructional thints,
tsuggested tactivities, tand tresources tfor teach tchapter. tFiles tfor tthe tfigures tand ttables tin
tthe ttextbook tare tfound ton tthe tinstructor’s twebsite. tIt tis tmy thope tthat tthese tresources
twill tmake tit teasier tfor tcourse tinstructors tto tteach tthe tmaterial tin ta tmeaningful tmanner.
tBecause tthe tcourses tthat tuse tthis ttextbook tare tquite tdiverse, tit tis timpossible tto torganize
tthe tchapters tinto tone tbest torder. tEach tinstructor tshould tconsider this tor ther tindividual
tprogram tand tdetermine twhich tchapters tneed tto t be ttaught tand t in twhat torder.
Best twishes,
Steven tJ. tPeterson, tMBA, tPE
Construction Accounting and Financial Management,
t t t t
4th Edition Steven J. Peterson
t t t t
Chapters 1 - 18, Complete Newest Version
t t t t t t
Construction tAccounting tand tFinancial tManagement,
, CONTENTS
New tto tthe tFourth tEdition 1
Chapter t1: tConstruction tFinancial tManagement 2
Chapter t2: tConstruction tAccounting tSystems 4
Chapter t3: tAccounting tTransactions 7
Chapter t4: tMore tConstruction tAccounting 23
Chapter t5: tDepreciation 34
Chapter t6: tAnalysis tof tFinancial tStatements 50
Chapter t7: tManaging tCosts 58
Chapter t8: tDetermining tLabor tBurden 62
Chapter t9: tManaging tGeneral tOverhead tCosts 65
Chapter t10: tSetting tProfit tMargins tfor tBidding 67
Chapter t11: tProfit tCenter tAnalysis 70
Chapter t12: tCash tFlows tFor tConstruction tProjects 75
Chapter t13: tProjecting tIncome tTaxes 87
Chapter t14: tCash tFlows tfor ta tConstruction tCompany 91
Chapter t15: tTime tValue tof tMoney 93
Chapter t16: tFinancing ta tCompany’s tFinancial tNeeds 99
Chapter t17: tMaking tFinancial tDecisions 111
Chapter t18: tIncome tTaxes tand tFinancial tDecisions 130
Construction tAccounting tand tFinancial tManagement,
, iii
Construction tAccounting tand tFinancial tManagement,
, New to the Fourth Edition
t t t t
The tmajor tchanges tto tthe tfourth tedition tinclude tthe tfollowing
The tbusiness tfailure trate tfor tconstruction tcompanies tin tChapter t1 thave
tbeentupdated.
Sections ton tcost tsegregation tand tbonus tdepreciation thave tbeen tadded tto tChapter t5.
The tdiscussion tof ttypical tmedian tratios tin tChapter t6 thas tbeen tupdated.
A tsection ton tthe tmonitoring tand tcontrolling tprocess thas tbeen tadded tto tChapter t7.
A tsection ton tmanaging tdesign-build tcosts thas tbeen tadded tto tChapter t7.
The twages, tsocial tsecurity, tand tMedicare tcosts twere tupdated tin tChapters t8,
t9,tand t14.
A tweekly tcash tflow tproblem thas tbeen tadded tto tChapter t12.
The tincome ttax tregulations tin tChapter t13 thave tbeen tupdated tto
t incorporatetprovisions tof tThe tTax tCuts tand tJobs tAct t passed t in tDecember
t2017.
The tproject tcash tflows tused tto tdevelop tan tannual tcash tflow tfor ta tconstruction
tcompany thave tbeen texpanded tto tcover tthe tentire tproject t(including twork tdone
tintthe tprior tyear) tand tthe tcalculation tof tthe tunderbillings/overbillings thas tbeen
tincluded t in tChapter t14.
The teffects tof ttaxes ton tdecision thas tbeen tupdated tin tChapter t18 tto tincorporate
tthetTax tCuts tand tJobs t Act.
The tInstructor’s tManual tincludes ta tlist tof tlearning tobjectives, tinstructional thints,
tsuggested tactivities, tand tresources tfor teach tchapter. tFiles tfor tthe tfigures tand ttables tin
tthe ttextbook tare tfound ton tthe tinstructor’s twebsite. tIt tis tmy thope tthat tthese tresources
twill tmake tit teasier tfor tcourse tinstructors tto tteach tthe tmaterial tin ta tmeaningful tmanner.
tBecause tthe tcourses tthat tuse tthis ttextbook tare tquite tdiverse, tit tis timpossible tto torganize
tthe tchapters tinto tone tbest torder. tEach tinstructor tshould tconsider this tor ther tindividual
tprogram tand tdetermine twhich tchapters tneed tto t be ttaught tand t in twhat torder.
Best twishes,
Steven tJ. tPeterson, tMBA, tPE
