SOLUTIONMANUAL B
ConstructionAccountingandFinancialManagement,
B B B B
4thEditionStevenJ.Peterson
B B B B
Chapters1 -18,CompleteNewestVersion
B B B B B B
ConstructionAccountingandFinancialManagement,
n n n
, CONTENTS
NewtotheFourthEdition 1
Chapter1:ConstructionFinancialManagement 2
Chapter2:ConstructionAccountingSystems 4
Chapter3:AccountingTransactions 7
Chapter4:MoreConstructionAccounting
n 23
Chapter5:Depreciation 34
Chapter6:AnalysisofFinancialStatements 50
Chapter7:ManagingCosts 58
Chapter8:DeterminingLaborBurden
B 62
Chapter9:ManagingGeneralOverhead Costs n 65
Chapter10:SettingProfit MarginsforBidding
n 67
Chapter11:ProfitCenterAnalysis
n 70
Chapter12:CashFlowsForConstructionProjects 75
Chapter13:ProjectingIncomeTaxes 87
Chapter14:CashFlowsforaConstructionCompany
n 91
Chapter15:TimeValueofMoney 93
Chapter16:FinancingaCompany’sFinancialNeeds 99
Chapter17:MakingFinancialDecisions 111
Chapter18:IncomeTaxesandFinancialDecisions 130
ConstructionAccountingandFinancialManagement,
n n n
, iii
ConstructionAccountingandFinancialManagement,
n n n
, NewtotheFourthEdition B
Themajorchangestothefourtheditionincludethefollowing B
• ThebusinessfailurerateforconstructioncompaniesinChapter1havebe
enupdated.
n
• SectionsoncostsegregationandbonusdepreciationhavebeenaddedtoChapter5.
• ThediscussionoftypicalmedianratiosinChapter6hasbeenupdated. n
• AsectiononthemonitoringandcontrollingprocesshasbeenaddedtoChapter7. B
• Asectiononmanaging design-buildcostshasbeenaddedtoChapter7. B n
• Thewages,socialsecurity,andMedicarecostswereupdatedinChapters8,
9,and14.
n
• Aweeklycashflowproblemhasbeenadded toChapter12. n
• TheincometaxregulationsinChapter13havebeenupdatedtoincorpora B
teprovisionsofTheTaxCutsandJobsActpassedinDecember2017.
n
• Theprojectcashflowsusedtodevelopanannualcashflowforaconstructionc B n
ompanyhavebeenexpandedtocovertheentireproject(includingworkdoneinthe
n
prioryear)andthecalculationoftheunderbillings/overbillingshasbeenincludedin
n
Chapter14.
n
• TheeffectsoftaxesondecisionhasbeenupdatedinChapter18toincorporatetheTax
CutsandJobsAct.
n
The Instructor’s Manual includes a list of learning objectives, instructional hints, suggest ed
n n n n n n n n n n n n
activities, and resources for each chapter. Files forthefigures and tables in the textbookare
n n n n n n n n n n n n n
found on theinstructor’s website.It ismyhope that these resourceswillmake i t easier for course
n n n n n n n n n n n n n n n n n n n
instructors to teach the material in a meaningful manner. Because th e courses that use this
n n n n n n n n n n n n n n n n
textbook are quite diverse, it is impossible to organize the chapte rs into one best order. Each
n n n n n n n n n n n n n n n n n
instructor should consider his or her individual program and determine which
n n n n n n n n n n n
chaptersneedtobetaughtandinwhatorder.
n
Bestwishes,
StevenJ.Peterson,MBA,PE
n
ConstructionAccountingandFinancialManagement,
B B B B
4thEditionStevenJ.Peterson
B B B B
Chapters1 -18,CompleteNewestVersion
B B B B B B
ConstructionAccountingandFinancialManagement,
n n n
, CONTENTS
NewtotheFourthEdition 1
Chapter1:ConstructionFinancialManagement 2
Chapter2:ConstructionAccountingSystems 4
Chapter3:AccountingTransactions 7
Chapter4:MoreConstructionAccounting
n 23
Chapter5:Depreciation 34
Chapter6:AnalysisofFinancialStatements 50
Chapter7:ManagingCosts 58
Chapter8:DeterminingLaborBurden
B 62
Chapter9:ManagingGeneralOverhead Costs n 65
Chapter10:SettingProfit MarginsforBidding
n 67
Chapter11:ProfitCenterAnalysis
n 70
Chapter12:CashFlowsForConstructionProjects 75
Chapter13:ProjectingIncomeTaxes 87
Chapter14:CashFlowsforaConstructionCompany
n 91
Chapter15:TimeValueofMoney 93
Chapter16:FinancingaCompany’sFinancialNeeds 99
Chapter17:MakingFinancialDecisions 111
Chapter18:IncomeTaxesandFinancialDecisions 130
ConstructionAccountingandFinancialManagement,
n n n
, iii
ConstructionAccountingandFinancialManagement,
n n n
, NewtotheFourthEdition B
Themajorchangestothefourtheditionincludethefollowing B
• ThebusinessfailurerateforconstructioncompaniesinChapter1havebe
enupdated.
n
• SectionsoncostsegregationandbonusdepreciationhavebeenaddedtoChapter5.
• ThediscussionoftypicalmedianratiosinChapter6hasbeenupdated. n
• AsectiononthemonitoringandcontrollingprocesshasbeenaddedtoChapter7. B
• Asectiononmanaging design-buildcostshasbeenaddedtoChapter7. B n
• Thewages,socialsecurity,andMedicarecostswereupdatedinChapters8,
9,and14.
n
• Aweeklycashflowproblemhasbeenadded toChapter12. n
• TheincometaxregulationsinChapter13havebeenupdatedtoincorpora B
teprovisionsofTheTaxCutsandJobsActpassedinDecember2017.
n
• Theprojectcashflowsusedtodevelopanannualcashflowforaconstructionc B n
ompanyhavebeenexpandedtocovertheentireproject(includingworkdoneinthe
n
prioryear)andthecalculationoftheunderbillings/overbillingshasbeenincludedin
n
Chapter14.
n
• TheeffectsoftaxesondecisionhasbeenupdatedinChapter18toincorporatetheTax
CutsandJobsAct.
n
The Instructor’s Manual includes a list of learning objectives, instructional hints, suggest ed
n n n n n n n n n n n n
activities, and resources for each chapter. Files forthefigures and tables in the textbookare
n n n n n n n n n n n n n
found on theinstructor’s website.It ismyhope that these resourceswillmake i t easier for course
n n n n n n n n n n n n n n n n n n n
instructors to teach the material in a meaningful manner. Because th e courses that use this
n n n n n n n n n n n n n n n n
textbook are quite diverse, it is impossible to organize the chapte rs into one best order. Each
n n n n n n n n n n n n n n n n n
instructor should consider his or her individual program and determine which
n n n n n n n n n n n
chaptersneedtobetaughtandinwhatorder.
n
Bestwishes,
StevenJ.Peterson,MBA,PE
n
