SOLUTION MANUAL
Construction Accounting and Financial Management,
4th Edition Steven J. Peterson
Chapters 1 - 18, Complete Newest Version
ConstructionYAccountingYandYFinancialYManagement,
, CONTENTS
NewYtoYtheYFourthYEdition 1
ChapterY1:YConstructionYFinancialYManagement 2
ChapterY2:YConstructionYAccountingYSystems 4
ChapterY3:YAccountingYTransactions 7
ChapterY4:YMoreYConstructionYAccounting 23
ChapterY5:YDepreciation 34
ChapterY6:YAnalysisYofYFinancialYStatements 50
ChapterY7:YManagingYCosts 58
ChapterY8:YDeterminingYLaborYBurden 62
ChapterY9:YManagingYGeneralYOverheadYCosts 65
ChapterY10:YSettingYProfitY MarginsYforYBidding 67
ChapterY11:YProfitY CenterYAnalysis 70
ChapterY12:YCashYFlowsYForYConstructionYProjects 75
ChapterY13:YProjectingYIncomeYTaxes 87
ChapterY14:YCashYFlowsYforYaYConstructionYCompany 91
ChapterY15:YTimeYValueYofYMoney 93
ChapterY16:YFinancingYaYCompany’sYFinancialYNeeds 99
ChapterY17:YMakingYFinancialYDecisions 111
ChapterY18:YIncomeYTaxesYandYFinancialYDecisions 130
ConstructionYAccountingYandYFinancialYManagement,
,ConstructionYAccountingYandYFinancialYManagement,
, New to the Fourth Edition
Y Y Y Y
TheYmajorYchangesYtoYtheYfourthYeditionYincludeYtheYfollowing
• TheYbusinessYfailureYrateYforYconstructionYcompaniesYinYChapterY1YhaveYbe
enYupdated.
• SectionsYonYcostYsegregationYandYbonusYdepreciationYhaveYbeenYaddedYtoYChapterY5.
• TheYdiscussionYofYtypicalYmedianYratiosYinYChapterY6YhasYbeenYupdated.
• AYsectionYonYtheYmonitoringYandYcontrollingYprocessYhasYbeenYaddedYtoYChapterY7.
• AYsectionYonYmanagingYdesign-buildYcostsYhasYbeenYaddedYtoYChapterY7.
• TheYwages,YsocialYsecurity,YandYMedicareYcostsYwereYupdatedYinYChaptersY8,
Y9,YandY14.
• AYweeklyYcashYflowYproblemYhasYbeenYaddedYtoYChapterY12.
• TheYincomeYtaxYregulationsYinYChapterY13YhaveYbeenYupdatedYtoYincorpora
teYprovisionsYofYTheYTaxYCutsYandYJobsYActYpassedYinYDecemberY2017.
• TheYprojectYcashYflowsYusedYtoYdevelopYanYannualYcashYflowYforYaYconstructionY
companyYhaveYbeenYexpandedYtoYcoverYtheYentireYprojectY(includingYworkYdoneYi
nYtheYpriorYyear)YandYtheYcalculationYofYtheYunderbillings/overbillingsYhasYbeenYin
cludedYinYChapterY14.
• TheYeffectsYofYtaxesYonYdecisionYhasYbeenYupdatedYinYChapterY18YtoYincorporateY
theYTaxYCutsYandYJobsYAct.
TheYInstructor’sYManualYincludesYaYlistYofYlearningYobjectives,YinstructionalYhints,Ysugges
tedYactivities,YandYresourcesYforYeachYchapter.YFilesYforYtheYfiguresYandYtablesYinYtheYtext
bookYareYfoundYonYtheYinstructor’sYwebsite.YItYisYmyYhopeYthatYtheseYresourcesYwillYmak
eYitYeasierYforYcourseYinstructorsYtoYteachYtheYmaterialYinYaYmeaningfulYmanner.YBecause
YtheYcoursesYthatYuseYthisYtextbookYareYquiteYdiverse,YitYisYimpossibleYtoYorganizeYtheYcha
ptersYintoYoneYbestYorder.YEachYinstructorYshouldYconsiderYhisYorYherYindividualYprogramY
andYdetermineYwhichYchaptersYneedYtoY beYtaughtYandYinYwhatYorder.
BestYwishes,
StevenYJ.YPeterson,YMBA,YPE
Construction Accounting and Financial Management,
4th Edition Steven J. Peterson
Chapters 1 - 18, Complete Newest Version
ConstructionYAccountingYandYFinancialYManagement,
, CONTENTS
NewYtoYtheYFourthYEdition 1
ChapterY1:YConstructionYFinancialYManagement 2
ChapterY2:YConstructionYAccountingYSystems 4
ChapterY3:YAccountingYTransactions 7
ChapterY4:YMoreYConstructionYAccounting 23
ChapterY5:YDepreciation 34
ChapterY6:YAnalysisYofYFinancialYStatements 50
ChapterY7:YManagingYCosts 58
ChapterY8:YDeterminingYLaborYBurden 62
ChapterY9:YManagingYGeneralYOverheadYCosts 65
ChapterY10:YSettingYProfitY MarginsYforYBidding 67
ChapterY11:YProfitY CenterYAnalysis 70
ChapterY12:YCashYFlowsYForYConstructionYProjects 75
ChapterY13:YProjectingYIncomeYTaxes 87
ChapterY14:YCashYFlowsYforYaYConstructionYCompany 91
ChapterY15:YTimeYValueYofYMoney 93
ChapterY16:YFinancingYaYCompany’sYFinancialYNeeds 99
ChapterY17:YMakingYFinancialYDecisions 111
ChapterY18:YIncomeYTaxesYandYFinancialYDecisions 130
ConstructionYAccountingYandYFinancialYManagement,
,ConstructionYAccountingYandYFinancialYManagement,
, New to the Fourth Edition
Y Y Y Y
TheYmajorYchangesYtoYtheYfourthYeditionYincludeYtheYfollowing
• TheYbusinessYfailureYrateYforYconstructionYcompaniesYinYChapterY1YhaveYbe
enYupdated.
• SectionsYonYcostYsegregationYandYbonusYdepreciationYhaveYbeenYaddedYtoYChapterY5.
• TheYdiscussionYofYtypicalYmedianYratiosYinYChapterY6YhasYbeenYupdated.
• AYsectionYonYtheYmonitoringYandYcontrollingYprocessYhasYbeenYaddedYtoYChapterY7.
• AYsectionYonYmanagingYdesign-buildYcostsYhasYbeenYaddedYtoYChapterY7.
• TheYwages,YsocialYsecurity,YandYMedicareYcostsYwereYupdatedYinYChaptersY8,
Y9,YandY14.
• AYweeklyYcashYflowYproblemYhasYbeenYaddedYtoYChapterY12.
• TheYincomeYtaxYregulationsYinYChapterY13YhaveYbeenYupdatedYtoYincorpora
teYprovisionsYofYTheYTaxYCutsYandYJobsYActYpassedYinYDecemberY2017.
• TheYprojectYcashYflowsYusedYtoYdevelopYanYannualYcashYflowYforYaYconstructionY
companyYhaveYbeenYexpandedYtoYcoverYtheYentireYprojectY(includingYworkYdoneYi
nYtheYpriorYyear)YandYtheYcalculationYofYtheYunderbillings/overbillingsYhasYbeenYin
cludedYinYChapterY14.
• TheYeffectsYofYtaxesYonYdecisionYhasYbeenYupdatedYinYChapterY18YtoYincorporateY
theYTaxYCutsYandYJobsYAct.
TheYInstructor’sYManualYincludesYaYlistYofYlearningYobjectives,YinstructionalYhints,Ysugges
tedYactivities,YandYresourcesYforYeachYchapter.YFilesYforYtheYfiguresYandYtablesYinYtheYtext
bookYareYfoundYonYtheYinstructor’sYwebsite.YItYisYmyYhopeYthatYtheseYresourcesYwillYmak
eYitYeasierYforYcourseYinstructorsYtoYteachYtheYmaterialYinYaYmeaningfulYmanner.YBecause
YtheYcoursesYthatYuseYthisYtextbookYareYquiteYdiverse,YitYisYimpossibleYtoYorganizeYtheYcha
ptersYintoYoneYbestYorder.YEachYinstructorYshouldYconsiderYhisYorYherYindividualYprogramY
andYdetermineYwhichYchaptersYneedYtoY beYtaughtYandYinYwhatYorder.
BestYwishes,
StevenYJ.YPeterson,YMBA,YPE
