Solution Manual for Construction Accounting and Financial Management, 4th Edition by Steven J. Peterson

SOLUTION MANUAL e




Construction Accounting and Financial Management,
e e e e




4th Edition Steven J. Peterson
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Chapters 1 - 18, Complete Newest Version
e e e e e e




ConstructioneAccountingeandeFinancialeManagement,

, CONTENTS
NewetoetheeFourtheEdition 1

Chaptere1:eConstructioneFinancialeManagement 2

Chaptere2:eConstructioneAccountingeSystems 4

Chaptere3:eAccountingeTransactions 7

Chaptere4:eMoreeConstructioneAccounting 23

Chaptere5:eDepreciation 34

Chaptere6:eAnalysiseofeFinancialeStatements 50

Chaptere7:eManagingeCosts 58

Chaptere8:eDeterminingeLaboreBurden 62

Chaptere9:eManagingeGeneraleOverheadeCosts 65

Chaptere10:eSettingeProfiteMarginseforeBidding 67

Chaptere11:eProfite CentereAnalysis 70

Chaptere12:eCasheFlowseForeConstructioneProjects 75

Chaptere13:eProjectingeIncomeeTaxes 87

Chaptere14:eCasheFlowseforeaeConstructioneCompany 91

Chaptere15:eTimeeValueeofeMoney 93

Chaptere16:eFinancingeaeCompany’seFinancialeNeeds 99

Chaptere17:eMakingeFinancialeDecisions 111

Chaptere18:eIncomeeTaxeseandeFinancialeDecisions 130




ConstructioneAccountingeandeFinancialeManagement,

, iii




ConstructioneAccountingeandeFinancialeManagement,

, New to the Fourth Edition
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Theemajorechangesetoetheefourtheeditioneincludeetheefollowing
 TheebusinessefailureerateeforeconstructionecompanieseineChaptere1ehaveebee
neupdated.
 SectionseonecostesegregationeandebonusedepreciationehaveebeeneaddedetoeChaptere5.
 TheediscussioneofetypicalemedianeratioseineChaptere6ehasebeeneupdated.
 AesectioneonetheemonitoringeandecontrollingeprocessehasebeeneaddedetoeChaptere7.
 Aesectioneonemanagingedesign-buildecostsehasebeeneaddedetoeChaptere7.
 Theewages,esocialesecurity,eandeMedicareecostsewereeupdatedeineChapterse8,e9
,eande14.
 AeweeklyecashefloweproblemehasebeeneaddedetoeChaptere12.
 TheeincomeetaxeregulationseineChaptere13ehaveebeeneupdatedetoeincorporat
eeprovisionseofeTheeTaxeCutseandeJobseActepassedeineDecembere2017.
 Theeprojectecasheflowseusedetoedevelopeaneannualecashefloweforeaeconstructionec
ompanyehaveebeeneexpandedetoecoveretheeentireeprojecte(includingeworkedoneeine
theeprioreyear)eandetheecalculationeofetheeunderbillings/overbillingsehasebeeneincl
udedeineChaptere14.
 TheeeffectseofetaxeseonedecisionehasebeeneupdatedeineChaptere18etoeincorporateeth
eeTaxeCutseandeJobseAct.
TheeInstructor’seManualeincludeseaelisteofelearningeobjectives,einstructionalehints,esuggest
edeactivities,eanderesourceseforeeachechapter.eFileseforetheefigureseandetableseinetheetextbo
okeareefoundeonetheeinstructor’sewebsite.eIteisemyehopeethatetheseeresourcesewillemakeeitee
asiereforecourseeinstructorsetoeteachetheematerialeineaemeaningfulemanner.eBecauseetheeco
ursesethateuseethisetextbookeareequiteediverse,eiteiseimpossibleetoeorganizeetheechapterseint
oeoneebesteorder.eEacheinstructoreshouldeconsiderehiseorehereindividualeprogrameandedeter
mineewhichechapterseneedetoebeetaughteandeinewhateorder.
Bestewishes,
SteveneJ.ePeterson,eMBA,ePE