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Material
SOLUTION MANUAL uu
Construction Accounting and Financial Management,
uu uu uu uu
4th Edition Steven J. Peterson
uu uu uu uu
Chapters 1 - 18, Complete Newest Version
uu uu uu uu uu uu
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Material
CONTENTS
New to the Fourth Edition
uu uu uu uu 1
Chapter 1: Construction Financial Management
uu uu uu 2
Chapter 2: Construction Accounting Systems
uu uu uu 4
Chapter 3: Accounting Transactions
uu uu 7
Chapter 4: More Construction Accounting
uu uu uu 23
Chapter 5: Depreciation
uu 34
Chapter 6: Analysis of Financial Statements
uu uu uu uu 50
Chapter 7: Managing Costs
uu uu 58
Chapter 8: Determining Labor Burden
uu uu uu 62
Chapter 9: Managing General Overhead Costs
uu uu uu uu 65
Chapter 10: Setting Profit Margins for Bidding
uu uu u u uu uu 67
Chapter 11: Profit Center Analysis
uu u u uu 70
Chapter 12: Cash Flows For Construction Projects
uu uu uu uu uu 75
Chapter 13: Projecting Income Taxes
uu uu uu 87
Chapter 14: Cash Flows for a Construction Company
uu uu uu uu uu uu 91
Chapter 15: Time Value of Money
uu uu uu uu 93
Chapter 16: Financing a Company’s Financial Needs
uu uu uu uu uu 99
Chapter 17: Making Financial Decisions
uu uu uu 111
Chapter 18: Income Taxes and Financial Decisions
uu uu uu uu uu 130
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uu $1.236
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uu uu uu uu uu uu uu uu uu
Material
New to the Fourth Edition uu uu uu uu
The major changes to the fourth edition include the following
uu uu uu uu uu uu uu uu uu
The business failure rate for construction companies in Chapterj 1
uu uu uu uu uu uu uu uu uu
have beenupdated.
uu uu
Sections on cost segregation and bonus depreciation have been added to Chapter
uu uu uu uu uu uu uu uu uu uu uu
uu5.
The discussion of typical median ratios in Chapter 6 has been updated.
uu uu uu uu uu uu uu uu uu uu uu
A section on the monitoring and controlling process has been added to Chapter 7.
uu uu uu uu uu uu uu uu uu uu uu uu uu
A section on managing design-build costs has been added to Chapter 7.
uu uu uu uu uu uu uu uu uu u u uu
The wages, social security, and Medicare costs were updated in
uu uu uu uu uu uu uu uu uu
Chapters 8, 9,and 14.
uu uu uu uu
A weekly cash flow problem has been added to Chapter 12.
uu uu uu uu uu uu uu uu uu uu
The income tax regulations in Chapter 13 have been updated to
uu uu uu uu uu uu uu uu uu uu
incorporateprovisions of The Tax Cuts and Jobs Act passed in
uu uu uu uu uu uu uu uu u u uu
December 2017.
uu uu
The project cash flows used to develop an annual cash flow for a
uu uu uu uu uu uu uu uu uu uu uu uu
construction company have been expanded to cover the entire
uu uu uu uu uu uu uu uu uu
project (including work done inthe prior year) and the calculation of
uu uu uu uu uu uu uu uu uu uu uu
the underbillings/overbillingsj has been included in Chapterj 14.
uu uu uu uu uu u u uu uu
The effects ofj taxes on decision has been updated in Chapterj 18
uu uu uu uu uu uu uu uu u u uu uu
to incorporate theTax Cuts and Jobs Act.
uu uu uu uu uu uu uu
The Instructor’s Manual includes a list of learning objectives, instructional hints,
uu uu uu uu uu uu uu uu uu uu
suggested activities, and resources forj each chapter. Files for the figures and tables
uu uu uu uu uu uu uu uu uu uu uu uu uu
in the textbook are found on the instructor’s website. It is my hope
uu uu u u u u u u u u u u u u u u u u u u u u u u
that these resources will make it easier for course instructors to teach the
u u u u uu uu uu uu uu uu uu uu uu uu uu
material in a
uu meaningful manner. Because the courses that use this
uu uu u u u u u u u u u u u u u u u u
textbook are quite diverse, it is impossible to organize the chapters into one
u u u u u u u u u u uu uu uu uu uu uu uu uu
best order. Each instructor should consider his or her individual program and
uu uu uu uu uu uu u u u u u u u u u u uu
determine which chapters need to be taught and in what order.
u u u u uu u u u u u u uu uu u u uu uu
Best wishes, uu
Steven J. Peterson, MBA, PE uu uu uu uu
Chapter 1: Construction Financial Management uu uu uu uu
Learning Objectives uu
At the completion of this chapter the student should be able to:
uu uu uu uu uu uu uu uu uu uu uu
Explain why financial management is so important to a construction company.
uu uu uu u u uu u u uu uu uu uu
Downloaded by: Bookista | uu uu uu Want to earn
uu uu
uu $1.236
uu
Distribution of this document is illegal extra per year?
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uu uu uu uu uu uu uu uu uu
Material
Explain why financial management is different for construction companies
uu uu uu u u uu uu uu uu
than formost other industries.
uu uu u u uu
Understand that all managerial employees from the owner to the crew
uu u u uu uu uu uu uu uu uu uu
forepersonplay a role in financial management ofj a construction
uu uu uu u u uu uu uu uu uu
company.
uu
Instructional Hints uu
Compare a construction company to a manufacturing plant. Emphasize the
uu uu uu uu uu uu uu uu uu
differences between a construction company and a manufacturing plant,
uu uu uu uu uu uu uu uu uu
particularly: construction companies build unique products and the
uu uu uu uu uu uu uu uu
equipment isnot usually stationary at single location. These are the
uu uu uu uu uu uu uu uu uu uu
reasons a construction company needsj a job cost system and an
uu u u uu uu uu uu u u uu uu uu uu
equipment cost system.
uu uu uu
Activities
Invite a financial manager (for example, an accountant or general
uu uu uu uu uu uu uu uu uu
manager) from aconstruction company to your class to discussj their role
uu uu uu uu uu uu uu uu uu uu uu
as a financial manager.
uu uu u u uu
Have each student interview a management employee forj a construction
uu uu uu uu uu uu uu uu uu
company.The interviews should include owners, project managers,
uu uu uu uu uu uu uu
superintendents, and forepersons. Each student is to find out how the
uu uu uu uu uu uu uu uu uu uu uu
employee contributes to the financial management of the company.
uu uu uu uu uu uu uu uu uu
Discuss their findings in class.
uu uu u u uu uu
Instruction Resources uu
The figures from this chapter in electronic format and PowerPoint
uu uu uu uu uu uu uu u u uu
slides can befound at the instructor’s website.
uu uu uu uu uu uu uu
Data on construction failures can be obtained from the Surety
uu uu uu uu uu uu uu uu u u
Information Office(www.sio.org).
uu uu
Current data on construction company failures can be found atj
uu uu uu uu uu uu uu uu uu
http://www.census.gov/ces/dataproducts/bds/data_firm.html. The most
u u uu uu
useful datacomes from reports that include the sector (e.g., Sector, Firm Age
uu uu uu uu uu uu uu uu uu uu uu uu
by Sector, and Firm Size by Sector) because construction can be separated
uu u u uu uu uu uu uu uu uu uu uu uu
from other industries.
uu uu u u
Solutions toj the Textbook Problems
uu uu uu uu
1. They are: 1) ineffective financial management systems, 2) bank line
uu uu uu uu uu uu uu uu uu
ofj creditsconstantly borrowed to the limits, 3) poor estimating
uu u u uu uu uu uu uu uu uu
and/or job cost reporting,
uu uu uu uu
4) poor project management, and 5) no comprehensive business plan.
uu uu uu uu uu uu uu uu uu
Downloaded by: Bookista | uu uu uu Want to earn
uu uu
uu $1.236
uu
Distribution of this document is illegal extra per year?
uu uu uu uu uu uu uu uu uu
Material
SOLUTION MANUAL uu
Construction Accounting and Financial Management,
uu uu uu uu
4th Edition Steven J. Peterson
uu uu uu uu
Chapters 1 - 18, Complete Newest Version
uu uu uu uu uu uu
Downloaded by: Bookista |
uu uu uu Want to earn
uu uu
uu $1.236
uu
Distribution of this document is illegal extra per year?
, Stuvia.com - The Marketplace to Buy and Sell your Study
uu uu uu uu uu uu uu uu uu
Material
CONTENTS
New to the Fourth Edition
uu uu uu uu 1
Chapter 1: Construction Financial Management
uu uu uu 2
Chapter 2: Construction Accounting Systems
uu uu uu 4
Chapter 3: Accounting Transactions
uu uu 7
Chapter 4: More Construction Accounting
uu uu uu 23
Chapter 5: Depreciation
uu 34
Chapter 6: Analysis of Financial Statements
uu uu uu uu 50
Chapter 7: Managing Costs
uu uu 58
Chapter 8: Determining Labor Burden
uu uu uu 62
Chapter 9: Managing General Overhead Costs
uu uu uu uu 65
Chapter 10: Setting Profit Margins for Bidding
uu uu u u uu uu 67
Chapter 11: Profit Center Analysis
uu u u uu 70
Chapter 12: Cash Flows For Construction Projects
uu uu uu uu uu 75
Chapter 13: Projecting Income Taxes
uu uu uu 87
Chapter 14: Cash Flows for a Construction Company
uu uu uu uu uu uu 91
Chapter 15: Time Value of Money
uu uu uu uu 93
Chapter 16: Financing a Company’s Financial Needs
uu uu uu uu uu 99
Chapter 17: Making Financial Decisions
uu uu uu 111
Chapter 18: Income Taxes and Financial Decisions
uu uu uu uu uu 130
Downloaded by: Bookista | uu uu uu Want to earn
uu uu
uu $1.236
uu
Distribution of this document is illegal extra per year?
, Stuvia.com - The Marketplace to Buy and Sell your Study
uu uu uu uu uu uu uu uu uu
Material
New to the Fourth Edition uu uu uu uu
The major changes to the fourth edition include the following
uu uu uu uu uu uu uu uu uu
The business failure rate for construction companies in Chapterj 1
uu uu uu uu uu uu uu uu uu
have beenupdated.
uu uu
Sections on cost segregation and bonus depreciation have been added to Chapter
uu uu uu uu uu uu uu uu uu uu uu
uu5.
The discussion of typical median ratios in Chapter 6 has been updated.
uu uu uu uu uu uu uu uu uu uu uu
A section on the monitoring and controlling process has been added to Chapter 7.
uu uu uu uu uu uu uu uu uu uu uu uu uu
A section on managing design-build costs has been added to Chapter 7.
uu uu uu uu uu uu uu uu uu u u uu
The wages, social security, and Medicare costs were updated in
uu uu uu uu uu uu uu uu uu
Chapters 8, 9,and 14.
uu uu uu uu
A weekly cash flow problem has been added to Chapter 12.
uu uu uu uu uu uu uu uu uu uu
The income tax regulations in Chapter 13 have been updated to
uu uu uu uu uu uu uu uu uu uu
incorporateprovisions of The Tax Cuts and Jobs Act passed in
uu uu uu uu uu uu uu uu u u uu
December 2017.
uu uu
The project cash flows used to develop an annual cash flow for a
uu uu uu uu uu uu uu uu uu uu uu uu
construction company have been expanded to cover the entire
uu uu uu uu uu uu uu uu uu
project (including work done inthe prior year) and the calculation of
uu uu uu uu uu uu uu uu uu uu uu
the underbillings/overbillingsj has been included in Chapterj 14.
uu uu uu uu uu u u uu uu
The effects ofj taxes on decision has been updated in Chapterj 18
uu uu uu uu uu uu uu uu u u uu uu
to incorporate theTax Cuts and Jobs Act.
uu uu uu uu uu uu uu
The Instructor’s Manual includes a list of learning objectives, instructional hints,
uu uu uu uu uu uu uu uu uu uu
suggested activities, and resources forj each chapter. Files for the figures and tables
uu uu uu uu uu uu uu uu uu uu uu uu uu
in the textbook are found on the instructor’s website. It is my hope
uu uu u u u u u u u u u u u u u u u u u u u u u u
that these resources will make it easier for course instructors to teach the
u u u u uu uu uu uu uu uu uu uu uu uu uu
material in a
uu meaningful manner. Because the courses that use this
uu uu u u u u u u u u u u u u u u u u
textbook are quite diverse, it is impossible to organize the chapters into one
u u u u u u u u u u uu uu uu uu uu uu uu uu
best order. Each instructor should consider his or her individual program and
uu uu uu uu uu uu u u u u u u u u u u uu
determine which chapters need to be taught and in what order.
u u u u uu u u u u u u uu uu u u uu uu
Best wishes, uu
Steven J. Peterson, MBA, PE uu uu uu uu
Chapter 1: Construction Financial Management uu uu uu uu
Learning Objectives uu
At the completion of this chapter the student should be able to:
uu uu uu uu uu uu uu uu uu uu uu
Explain why financial management is so important to a construction company.
uu uu uu u u uu u u uu uu uu uu
Downloaded by: Bookista | uu uu uu Want to earn
uu uu
uu $1.236
uu
Distribution of this document is illegal extra per year?
, Stuvia.com - The Marketplace to Buy and Sell your Study
uu uu uu uu uu uu uu uu uu
Material
Explain why financial management is different for construction companies
uu uu uu u u uu uu uu uu
than formost other industries.
uu uu u u uu
Understand that all managerial employees from the owner to the crew
uu u u uu uu uu uu uu uu uu uu
forepersonplay a role in financial management ofj a construction
uu uu uu u u uu uu uu uu uu
company.
uu
Instructional Hints uu
Compare a construction company to a manufacturing plant. Emphasize the
uu uu uu uu uu uu uu uu uu
differences between a construction company and a manufacturing plant,
uu uu uu uu uu uu uu uu uu
particularly: construction companies build unique products and the
uu uu uu uu uu uu uu uu
equipment isnot usually stationary at single location. These are the
uu uu uu uu uu uu uu uu uu uu
reasons a construction company needsj a job cost system and an
uu u u uu uu uu uu u u uu uu uu uu
equipment cost system.
uu uu uu
Activities
Invite a financial manager (for example, an accountant or general
uu uu uu uu uu uu uu uu uu
manager) from aconstruction company to your class to discussj their role
uu uu uu uu uu uu uu uu uu uu uu
as a financial manager.
uu uu u u uu
Have each student interview a management employee forj a construction
uu uu uu uu uu uu uu uu uu
company.The interviews should include owners, project managers,
uu uu uu uu uu uu uu
superintendents, and forepersons. Each student is to find out how the
uu uu uu uu uu uu uu uu uu uu uu
employee contributes to the financial management of the company.
uu uu uu uu uu uu uu uu uu
Discuss their findings in class.
uu uu u u uu uu
Instruction Resources uu
The figures from this chapter in electronic format and PowerPoint
uu uu uu uu uu uu uu u u uu
slides can befound at the instructor’s website.
uu uu uu uu uu uu uu
Data on construction failures can be obtained from the Surety
uu uu uu uu uu uu uu uu u u
Information Office(www.sio.org).
uu uu
Current data on construction company failures can be found atj
uu uu uu uu uu uu uu uu uu
http://www.census.gov/ces/dataproducts/bds/data_firm.html. The most
u u uu uu
useful datacomes from reports that include the sector (e.g., Sector, Firm Age
uu uu uu uu uu uu uu uu uu uu uu uu
by Sector, and Firm Size by Sector) because construction can be separated
uu u u uu uu uu uu uu uu uu uu uu uu
from other industries.
uu uu u u
Solutions toj the Textbook Problems
uu uu uu uu
1. They are: 1) ineffective financial management systems, 2) bank line
uu uu uu uu uu uu uu uu uu
ofj creditsconstantly borrowed to the limits, 3) poor estimating
uu u u uu uu uu uu uu uu uu
and/or job cost reporting,
uu uu uu uu
4) poor project management, and 5) no comprehensive business plan.
uu uu uu uu uu uu uu uu uu
Downloaded by: Bookista | uu uu uu Want to earn
uu uu
uu $1.236
uu
Distribution of this document is illegal extra per year?
