Solution Manual for Construction Accounting and
Financial Management, 4th Edition
by Steven J. Peterson — complete solution manual
covering Chapters 1 – 18
Construction Accounting and Financial Management,
, CONTENTS
New to the Fourth Edition 1
Chapter 1: Construction Financial Management 2
Chapter 2: Construction Accounting Systems 4
Chapter 3: Accounting Transactions 7
Chapter 4: More Construction Accounting 23
Chapter 5: Depreciation 34
Chapter 6: Analysis of Financial Statements 50
Chapter 7: Managing Costs 58
Chapter 8: Determining Labor Burden 62
Chapter 9: Managing General Overhead Costs 65
Chapter 10: Setting Profit Margins for Bidding 67
Chapter 11: Profit Center Analysis 70
Chapter 12: Cash Flows For Construction Projects 75
Chapter 13: Projecting Income Taxes 87
Chapter 14: Cash Flows for a Construction Company 91
Chapter 15: Time Value of Money 93
Chapter 16: Financing a Company’s Financial Needs 99
Chapter 17: Making Financial Decisions 111
Chapter 18: Income Taxes and Financial Decisions 130
Construction Accounting and Financial Management,
, ííí
Construction Accounting and Financial Management,
, New to the Fourth Edítíon
The major changes to the fourth edítíon ínclude the followíng
• The busíness faílure rate for constructíon companíes ín Chapter 1 have
beenupdated.
• Sectíons on cost segregatíon and bonus deprecíatíon have been added to Chapter 5.
• The díscussíon of typícal medían ratíos ín Chapter 6 has been updated.
• A sectíon on the monítoríng and controllíng process has been added to Chapter 7.
• A sectíon on managíng desígn-buíld costs has been added to Chapter 7.
• The wages, socíal securíty, and Medícare costs were updated ín Chapters 8,
9,and 14.
• A weekly cash flow problem has been added to Chapter 12.
• The íncome tax regulatíons ín Chapter 13 have been updated to
íncorporateprovísíons of The Tax Cuts and Jobs Act passed ín December
2017.
• The project cash flows used to develop an annual cash flow for a constructíon
company have been expanded to cover the entíre project (íncludíng work done
ínthe príor year) and the calculatíon of the underbíllíngs/overbíllíngs has been
íncluded ín Chapter 14.
• The effects of taxes on decísíon has been updated ín Chapter 18 to íncorporate
theTax Cuts and Jobs Act.
The Instructor’s Manual íncludes a líst of learníng objectíves, ínstructíonal hínts,
suggested actívítíes, and resources for each chapter. Fíles for the fígures and tables ín
the textbook are found on the ínstructor’s websíte. It ís my hope that these resources
wíll make ít easíer for course ínstructors to teach the materíal ín a meaníngful manner.
Because the courses that use thís textbook are quíte díverse, ít ís ímpossíble to organíze
the chapters ínto one best order. Each ínstructor should consíder hís or her índívídual
program and determíne whích chapters need to be taught and ín what order.
Best wíshes,
Steven J. Peterson, MBA, PE
Financial Management, 4th Edition
by Steven J. Peterson — complete solution manual
covering Chapters 1 – 18
Construction Accounting and Financial Management,
, CONTENTS
New to the Fourth Edition 1
Chapter 1: Construction Financial Management 2
Chapter 2: Construction Accounting Systems 4
Chapter 3: Accounting Transactions 7
Chapter 4: More Construction Accounting 23
Chapter 5: Depreciation 34
Chapter 6: Analysis of Financial Statements 50
Chapter 7: Managing Costs 58
Chapter 8: Determining Labor Burden 62
Chapter 9: Managing General Overhead Costs 65
Chapter 10: Setting Profit Margins for Bidding 67
Chapter 11: Profit Center Analysis 70
Chapter 12: Cash Flows For Construction Projects 75
Chapter 13: Projecting Income Taxes 87
Chapter 14: Cash Flows for a Construction Company 91
Chapter 15: Time Value of Money 93
Chapter 16: Financing a Company’s Financial Needs 99
Chapter 17: Making Financial Decisions 111
Chapter 18: Income Taxes and Financial Decisions 130
Construction Accounting and Financial Management,
, ííí
Construction Accounting and Financial Management,
, New to the Fourth Edítíon
The major changes to the fourth edítíon ínclude the followíng
• The busíness faílure rate for constructíon companíes ín Chapter 1 have
beenupdated.
• Sectíons on cost segregatíon and bonus deprecíatíon have been added to Chapter 5.
• The díscussíon of typícal medían ratíos ín Chapter 6 has been updated.
• A sectíon on the monítoríng and controllíng process has been added to Chapter 7.
• A sectíon on managíng desígn-buíld costs has been added to Chapter 7.
• The wages, socíal securíty, and Medícare costs were updated ín Chapters 8,
9,and 14.
• A weekly cash flow problem has been added to Chapter 12.
• The íncome tax regulatíons ín Chapter 13 have been updated to
íncorporateprovísíons of The Tax Cuts and Jobs Act passed ín December
2017.
• The project cash flows used to develop an annual cash flow for a constructíon
company have been expanded to cover the entíre project (íncludíng work done
ínthe príor year) and the calculatíon of the underbíllíngs/overbíllíngs has been
íncluded ín Chapter 14.
• The effects of taxes on decísíon has been updated ín Chapter 18 to íncorporate
theTax Cuts and Jobs Act.
The Instructor’s Manual íncludes a líst of learníng objectíves, ínstructíonal hínts,
suggested actívítíes, and resources for each chapter. Fíles for the fígures and tables ín
the textbook are found on the ínstructor’s websíte. It ís my hope that these resources
wíll make ít easíer for course ínstructors to teach the materíal ín a meaníngful manner.
Because the courses that use thís textbook are quíte díverse, ít ís ímpossíble to organíze
the chapters ínto one best order. Each ínstructor should consíder hís or her índívídual
program and determíne whích chapters need to be taught and ín what order.
Best wíshes,
Steven J. Peterson, MBA, PE
