SOLUTION MANUAL m
Construction Accounting and Financial Management,
m m m m
4th Edition Steven J. Peterson
m m m m
Chapters 1 - 18, Complete Newest Version
m m m m m m
Construction m Accountingm and m Financial m Management,
, CONTENTS
NewmtomthemFourthmEdition 1
Chapterm1:mConstructionmFinancialmManagement 2
Chapterm2:mConstructionmAccounting mSystems 4
Chapterm3:mAccounting mTransactions 7
Chapterm4:mMoremConstructionmAccounting 23
Chapterm5:mDepreciation 34
Chapterm6:mAnalysismofmFinancialmStatements 50
Chapterm7:mManaging JCosts 58
Chapterm8:mDetermining mLabormBurden 62
Chapterm9:mManagingJGeneralmOverheadmCosts 65
Chapterm10:mSettingmProfitmMarginsmformBidding 67
Chapterm11:mProfitmCentermAnalysis 70
Chapterm12:mCashmFlowsmFormConstructionmProjects 75
Chapterm13:mProjecting JIncomemTaxes 87
Chapterm14:mCashmFlowsmformamConstructionmCompany 91
Chapterm15:mTimemValuemofmMoney 93
Chapterm16:mFinancingmamCompany’smFinancialmNeeds 99
Chapterm17:mMaking mFinancialmDecisions 111
Chapterm18:mIncomemTaxesmandmFinancialmDecisions 130
Construction m Accountingm and m Financial m Management,
, iii
Construction m Accountingm and m Financial m Management,
, New to the Fourth Edition
m m m m
Themmajormchangesmtomthemfourthmeditionmincludemthemfollowing
• ThembusinessmfailuremratemformconstructionmcompaniesminmChapter m1mhavembe
enmupdated.
• SectionsmonmcostmsegregationmandmbonusmdepreciationmhavembeenmaddedmtomChapter m5.
• ThemdiscussionmofmtypicalmmedianmratiosminmChapter m6mhasmbeenmupdated.
• Amsectionmonmthemmonitoring mandmcontrolling mprocessmhasJbeenmaddedmtomChapter m7.
• Amsectionmonmmanaging mdesign-buildmcostsmhasmbeenmaddedmtomChapter m7.
• Themwages,msocialmsecurity,mandmMedicaremcostsmweremupdatedminmChaptersm8,m
9,amndm14.
• AmweeklymcashmflowmproblemmhasJbeenmaddedmtomChapter m12.
• ThemincomemtaxmregulationsminmChapter m13mhavembeenmupdatedmtomincorpor
atemprovisionsmofmThemTaxmCutsmandmJobsmActmpassedminmDecember m2017.
• ThemprojectmcashmflowsJusedmtomdevelopmanmannualmcashmflowmformamconstruction
mcom mpanymhavembeenmexpandedmtom cover mthementiremprojectm (including mworkmdo
neminthmemprior myear)mandmthemcalculationmofmthemunderbillings/overbillingsmhasmb
eenmincludmedminmChapter m14.
• ThemeffectsmofmtaxesmonmdecisionmhasmbeenmupdatedminmChapter m18mtomincorporate
mthem Taxm Cutsm andm JobsJ Act.
ThemInstructor’smManualmincludesmamlistmofmlearning mobjectives,minstructional mhints,msugge
stemdmactivities,mandmresourcesmformeachmchapter.mFilesmformthemfiguresmandmtablesminmthemt
extbookmaremfoundmonmtheminstructor’smwebsite.mItmismmymhopemthatmthesemresourcesmwillm
makemitmeasier mformcourseminstructorsmtoJteachmthemmaterialminmammeaningfulmmanner.mBec
ausemthemcoursesmtmhatmusemthismtextbookmaremquitemdiverse,mitmismimpossiblemtomorganizemt
hemchaptersmintomonembmestmorder.mEachminstructor mshouldmconsider mhismormhermindividualmp
rogrammandmdeterminemwhimchmchaptersmneedmtombemtaughtmandminmwhatmorder.
Bestmwishes,
StevenmJ.mPeterson,mMBA,mPE
Construction Accounting and Financial Management,
m m m m
4th Edition Steven J. Peterson
m m m m
Chapters 1 - 18, Complete Newest Version
m m m m m m
Construction m Accountingm and m Financial m Management,
, CONTENTS
NewmtomthemFourthmEdition 1
Chapterm1:mConstructionmFinancialmManagement 2
Chapterm2:mConstructionmAccounting mSystems 4
Chapterm3:mAccounting mTransactions 7
Chapterm4:mMoremConstructionmAccounting 23
Chapterm5:mDepreciation 34
Chapterm6:mAnalysismofmFinancialmStatements 50
Chapterm7:mManaging JCosts 58
Chapterm8:mDetermining mLabormBurden 62
Chapterm9:mManagingJGeneralmOverheadmCosts 65
Chapterm10:mSettingmProfitmMarginsmformBidding 67
Chapterm11:mProfitmCentermAnalysis 70
Chapterm12:mCashmFlowsmFormConstructionmProjects 75
Chapterm13:mProjecting JIncomemTaxes 87
Chapterm14:mCashmFlowsmformamConstructionmCompany 91
Chapterm15:mTimemValuemofmMoney 93
Chapterm16:mFinancingmamCompany’smFinancialmNeeds 99
Chapterm17:mMaking mFinancialmDecisions 111
Chapterm18:mIncomemTaxesmandmFinancialmDecisions 130
Construction m Accountingm and m Financial m Management,
, iii
Construction m Accountingm and m Financial m Management,
, New to the Fourth Edition
m m m m
Themmajormchangesmtomthemfourthmeditionmincludemthemfollowing
• ThembusinessmfailuremratemformconstructionmcompaniesminmChapter m1mhavembe
enmupdated.
• SectionsmonmcostmsegregationmandmbonusmdepreciationmhavembeenmaddedmtomChapter m5.
• ThemdiscussionmofmtypicalmmedianmratiosminmChapter m6mhasmbeenmupdated.
• Amsectionmonmthemmonitoring mandmcontrolling mprocessmhasJbeenmaddedmtomChapter m7.
• Amsectionmonmmanaging mdesign-buildmcostsmhasmbeenmaddedmtomChapter m7.
• Themwages,msocialmsecurity,mandmMedicaremcostsmweremupdatedminmChaptersm8,m
9,amndm14.
• AmweeklymcashmflowmproblemmhasJbeenmaddedmtomChapter m12.
• ThemincomemtaxmregulationsminmChapter m13mhavembeenmupdatedmtomincorpor
atemprovisionsmofmThemTaxmCutsmandmJobsmActmpassedminmDecember m2017.
• ThemprojectmcashmflowsJusedmtomdevelopmanmannualmcashmflowmformamconstruction
mcom mpanymhavembeenmexpandedmtom cover mthementiremprojectm (including mworkmdo
neminthmemprior myear)mandmthemcalculationmofmthemunderbillings/overbillingsmhasmb
eenmincludmedminmChapter m14.
• ThemeffectsmofmtaxesmonmdecisionmhasmbeenmupdatedminmChapter m18mtomincorporate
mthem Taxm Cutsm andm JobsJ Act.
ThemInstructor’smManualmincludesmamlistmofmlearning mobjectives,minstructional mhints,msugge
stemdmactivities,mandmresourcesmformeachmchapter.mFilesmformthemfiguresmandmtablesminmthemt
extbookmaremfoundmonmtheminstructor’smwebsite.mItmismmymhopemthatmthesemresourcesmwillm
makemitmeasier mformcourseminstructorsmtoJteachmthemmaterialminmammeaningfulmmanner.mBec
ausemthemcoursesmtmhatmusemthismtextbookmaremquitemdiverse,mitmismimpossiblemtomorganizemt
hemchaptersmintomonembmestmorder.mEachminstructor mshouldmconsider mhismormhermindividualmp
rogrammandmdeterminemwhimchmchaptersmneedmtombemtaughtmandminmwhatmorder.
Bestmwishes,
StevenmJ.mPeterson,mMBA,mPE
