SOLUTION MANUAL For Construction
Accounting and Financial Management, 4th Edition
Steven J. Peterson |All Chapters 1 - 18|
, CONTENTS
NewJtoJtheJFourthJEdition 1
ChapterJ1:JConstructionJFinancialJManagement 2
ChapterJ2:JConstructionJAccountingJSystems 4
ChapterJ3:JAccountingJTransactions 7
ChapterJ4:JMoreJConstructionJAccounting 23
ChapterJ5:JDepreciation 34
ChapterJ6:JAnalysisJofJFinancialJStatements 50
ChapterJ7:JManagingJCosts 58
ChapterJ8:JDeterminingJLaborJBurden 62
ChapterJ9:JManagingJGeneralJOverheadJCosts 65
ChapterJ10:JSettingJProfitJ MarginsJforJBidding 67
ChapterJ11:JProfitJ CenterJAnalysis 70
ChapterJ12:JCashJFlowsJForJConstructionJProjects 75
ChapterJ13:JProjectingJIncomeJTaxes 87
ChapterJ14:JCashJFlowsJforJaJConstructionJCompany 91
ChapterJ15:JTimeJValueJofJMoney 93
ChapterJ16:JFinancingJaJCompany’sJFinancialJNeeds 99
ChapterJ17:JMakingJFinancialJDecisions 111
ChapterJ18:JIncomeJTaxesJandJFinancialJDecisions 130
ConstructionJAccountingJandJFinancialJManagement,
, New to the Fourth Edition
J J J J
TheJmajorJchangesJtoJtheJfourthJeditionJincludeJtheJfollowing
TheJbusinessJfailureJrateJforJconstructionJcompaniesJinJChapterJ1JhaveJbeenJ
updated.
SectionsJonJcostJsegregationJandJbonusJdepreciationJhaveJbeenJaddedJtoJChapterJ5.
TheJdiscussionJofJtypicalJmedianJratiosJinJChapterJ6JhasJbeenJupdated.
AJsectionJonJtheJmonitoringJandJcontrollingJprocessJhasJbeenJaddedJtoJChapterJ7.
AJsectionJonJmanagingJdesign-buildJcostsJhasJbeenJaddedJtoJChapterJ7.
TheJwages,JsocialJsecurity,JandJMedicareJcostsJwereJupdatedJinJChaptersJ8,J9,Ja
ndJ14.
AJweeklyJcashJflowJproblemJhasJbeenJaddedJtoJChapterJ12.
TheJincomeJtaxJregulationsJinJChapterJ13JhaveJbeenJupdatedJtoJincorporateJ
provisionsJofJTheJTaxJCutsJandJJobsJActJpassedJinJDecemberJ2017.
TheJprojectJcashJflowsJusedJtoJdevelopJanJannualJcashJflowJforJaJconstructionJco
mpanyJhaveJbeenJexpandedJtoJcoverJtheJentireJprojectJ(includingJworkJdoneJinJth
eJpriorJyear)JandJtheJcalculationJofJtheJunderbillings/overbillingsJhasJbeenJinclud
edJinJChapterJ14.
TheJeffectsJofJtaxesJonJdecisionJhasJbeenJupdatedJinJChapterJ18JtoJincorporateJtheJ
TaxJCutsJandJJobsJAct.
TheJInstructor’sJManualJincludesJaJlistJofJlearningJobjectives,JinstructionalJhints,Jsuggeste
dJactivities,JandJresourcesJforJeachJchapter.JFilesJforJtheJfiguresJandJtablesJinJtheJtextbookJ
areJfoundJonJtheJinstructor’sJwebsite.JItJisJmyJhopeJthatJtheseJresourcesJwillJmakeJitJeasierJ
forJcourseJinstructorsJtoJteachJtheJmaterialJinJaJmeaningfulJmanner.JBecauseJtheJcoursesJt
hatJuseJthisJtextbookJareJquiteJdiverse,JitJisJimpossibleJtoJorganizeJtheJchaptersJintoJoneJb
estJorder.JEachJinstructorJshouldJconsiderJhisJorJherJindividualJprogramJandJdetermineJwhi
chJchaptersJneedJtoJ beJtaughtJandJinJwhatJorder.
BestJwishes,
StevenJJ.JPeterson,JMBA,JPE
, Chapter 1: Construction Financial Management
J J J J
LearningJObjectives
AtJtheJcompletionJofJthisJchapterJtheJstudentJshouldJbeJableJto:
ExplainJwhyJfinancialJmanagementJisJsoJimportantJtoJaJconstructionJcompany.
ExplainJwhyJfinancialJmanagementJ isJdifferentJforJconstructionJcompaniesJthanJforJ
mostJotherJindustries.
UnderstandJthatJallJmanagerialJemployeesJfromJtheJownerJtoJtheJcrewJforeperso
nJplayJaJroleJinJfinancialJmanagementJofJaJconstructionJcompany.
InstructionalJHints
CompareJaJconstructionJcompanyJtoJaJmanufacturingJplant.JEmphasizeJtheJdiffe
rencesJbetweenJaJconstructionJcompanyJandJaJmanufacturingJplant,Jparticularly
:JconstructionJcompaniesJbuildJuniqueJproductsJandJtheJequipmentJisJnotJusuallyJ
stationaryJatJsingleJlocation.JTheseJareJtheJreasonsJaJconstructionJcompanyJnee
dsJaJjobJcostJsystemJandJanJequipmentJcostJsystem.
Activities
InviteJaJfinancialJmanagerJ(forJexample,JanJaccountantJorJgeneralJmanager)JfromJaJ
constructionJcompanyJtoJyourJclassJtoJdiscussJtheirJroleJasJaJ financialJmanager.
HaveJeachJstudentJinterviewJaJmanagementJemployeeJforJaJconstructionJcompany
.JTheJinterviewsJshouldJincludeJowners,JprojectJmanagers,Jsuperintendents,JandJfo
repersons.JEachJstudentJisJtoJfindJoutJhowJtheJemployeeJcontributesJtoJtheJfinanci
alJmanagementJofJtheJcompany.JDiscussJtheirJ findingsJinJclass.
InstructionJResources
TheJfiguresJfromJthisJchapterJinJelectronicJformatJandJPowerPointJslidesJcanJbeJf
oundJatJtheJinstructor’sJwebsite.
DataJonJconstructionJfailuresJcanJbeJobtainedJfromJtheJ SuretyJInformationJOfficeJ(
www.sio.org).
CurrentJdataJonJconstructionJcompanyJfailuresJcanJbeJfoundJatJhttp://www.censu
s.gov/ces/dataproducts/bds/data_firm.html.JTheJmostJusefulJdataJcomesJfromJre
portsJthatJincludeJtheJsectorJ(e.g.,JSector,JFirmJAgeJbyJSector,JandJFirmJSizeJbyJSect
or)JbecauseJconstructionJcanJbeJseparatedJfromJotherJindustries.
Accounting and Financial Management, 4th Edition
Steven J. Peterson |All Chapters 1 - 18|
, CONTENTS
NewJtoJtheJFourthJEdition 1
ChapterJ1:JConstructionJFinancialJManagement 2
ChapterJ2:JConstructionJAccountingJSystems 4
ChapterJ3:JAccountingJTransactions 7
ChapterJ4:JMoreJConstructionJAccounting 23
ChapterJ5:JDepreciation 34
ChapterJ6:JAnalysisJofJFinancialJStatements 50
ChapterJ7:JManagingJCosts 58
ChapterJ8:JDeterminingJLaborJBurden 62
ChapterJ9:JManagingJGeneralJOverheadJCosts 65
ChapterJ10:JSettingJProfitJ MarginsJforJBidding 67
ChapterJ11:JProfitJ CenterJAnalysis 70
ChapterJ12:JCashJFlowsJForJConstructionJProjects 75
ChapterJ13:JProjectingJIncomeJTaxes 87
ChapterJ14:JCashJFlowsJforJaJConstructionJCompany 91
ChapterJ15:JTimeJValueJofJMoney 93
ChapterJ16:JFinancingJaJCompany’sJFinancialJNeeds 99
ChapterJ17:JMakingJFinancialJDecisions 111
ChapterJ18:JIncomeJTaxesJandJFinancialJDecisions 130
ConstructionJAccountingJandJFinancialJManagement,
, New to the Fourth Edition
J J J J
TheJmajorJchangesJtoJtheJfourthJeditionJincludeJtheJfollowing
TheJbusinessJfailureJrateJforJconstructionJcompaniesJinJChapterJ1JhaveJbeenJ
updated.
SectionsJonJcostJsegregationJandJbonusJdepreciationJhaveJbeenJaddedJtoJChapterJ5.
TheJdiscussionJofJtypicalJmedianJratiosJinJChapterJ6JhasJbeenJupdated.
AJsectionJonJtheJmonitoringJandJcontrollingJprocessJhasJbeenJaddedJtoJChapterJ7.
AJsectionJonJmanagingJdesign-buildJcostsJhasJbeenJaddedJtoJChapterJ7.
TheJwages,JsocialJsecurity,JandJMedicareJcostsJwereJupdatedJinJChaptersJ8,J9,Ja
ndJ14.
AJweeklyJcashJflowJproblemJhasJbeenJaddedJtoJChapterJ12.
TheJincomeJtaxJregulationsJinJChapterJ13JhaveJbeenJupdatedJtoJincorporateJ
provisionsJofJTheJTaxJCutsJandJJobsJActJpassedJinJDecemberJ2017.
TheJprojectJcashJflowsJusedJtoJdevelopJanJannualJcashJflowJforJaJconstructionJco
mpanyJhaveJbeenJexpandedJtoJcoverJtheJentireJprojectJ(includingJworkJdoneJinJth
eJpriorJyear)JandJtheJcalculationJofJtheJunderbillings/overbillingsJhasJbeenJinclud
edJinJChapterJ14.
TheJeffectsJofJtaxesJonJdecisionJhasJbeenJupdatedJinJChapterJ18JtoJincorporateJtheJ
TaxJCutsJandJJobsJAct.
TheJInstructor’sJManualJincludesJaJlistJofJlearningJobjectives,JinstructionalJhints,Jsuggeste
dJactivities,JandJresourcesJforJeachJchapter.JFilesJforJtheJfiguresJandJtablesJinJtheJtextbookJ
areJfoundJonJtheJinstructor’sJwebsite.JItJisJmyJhopeJthatJtheseJresourcesJwillJmakeJitJeasierJ
forJcourseJinstructorsJtoJteachJtheJmaterialJinJaJmeaningfulJmanner.JBecauseJtheJcoursesJt
hatJuseJthisJtextbookJareJquiteJdiverse,JitJisJimpossibleJtoJorganizeJtheJchaptersJintoJoneJb
estJorder.JEachJinstructorJshouldJconsiderJhisJorJherJindividualJprogramJandJdetermineJwhi
chJchaptersJneedJtoJ beJtaughtJandJinJwhatJorder.
BestJwishes,
StevenJJ.JPeterson,JMBA,JPE
, Chapter 1: Construction Financial Management
J J J J
LearningJObjectives
AtJtheJcompletionJofJthisJchapterJtheJstudentJshouldJbeJableJto:
ExplainJwhyJfinancialJmanagementJisJsoJimportantJtoJaJconstructionJcompany.
ExplainJwhyJfinancialJmanagementJ isJdifferentJforJconstructionJcompaniesJthanJforJ
mostJotherJindustries.
UnderstandJthatJallJmanagerialJemployeesJfromJtheJownerJtoJtheJcrewJforeperso
nJplayJaJroleJinJfinancialJmanagementJofJaJconstructionJcompany.
InstructionalJHints
CompareJaJconstructionJcompanyJtoJaJmanufacturingJplant.JEmphasizeJtheJdiffe
rencesJbetweenJaJconstructionJcompanyJandJaJmanufacturingJplant,Jparticularly
:JconstructionJcompaniesJbuildJuniqueJproductsJandJtheJequipmentJisJnotJusuallyJ
stationaryJatJsingleJlocation.JTheseJareJtheJreasonsJaJconstructionJcompanyJnee
dsJaJjobJcostJsystemJandJanJequipmentJcostJsystem.
Activities
InviteJaJfinancialJmanagerJ(forJexample,JanJaccountantJorJgeneralJmanager)JfromJaJ
constructionJcompanyJtoJyourJclassJtoJdiscussJtheirJroleJasJaJ financialJmanager.
HaveJeachJstudentJinterviewJaJmanagementJemployeeJforJaJconstructionJcompany
.JTheJinterviewsJshouldJincludeJowners,JprojectJmanagers,Jsuperintendents,JandJfo
repersons.JEachJstudentJisJtoJfindJoutJhowJtheJemployeeJcontributesJtoJtheJfinanci
alJmanagementJofJtheJcompany.JDiscussJtheirJ findingsJinJclass.
InstructionJResources
TheJfiguresJfromJthisJchapterJinJelectronicJformatJandJPowerPointJslidesJcanJbeJf
oundJatJtheJinstructor’sJwebsite.
DataJonJconstructionJfailuresJcanJbeJobtainedJfromJtheJ SuretyJInformationJOfficeJ(
www.sio.org).
CurrentJdataJonJconstructionJcompanyJfailuresJcanJbeJfoundJatJhttp://www.censu
s.gov/ces/dataproducts/bds/data_firm.html.JTheJmostJusefulJdataJcomesJfromJre
portsJthatJincludeJtheJsectorJ(e.g.,JSector,JFirmJAgeJbyJSector,JandJFirmJSizeJbyJSect
or)JbecauseJconstructionJcanJbeJseparatedJfromJotherJindustries.
