SOLUTION MANUAL
Construction Accounting and Financial Management,
4th Edition Steven J. Peterson
Chapters 1 - 18, Complete Newest Version
Construction Accounting and Financial Management,
, CONTENTS
Newtothe FourthEdition 1
Chapter 1: Construction FinancialManagement 2
Chapter 2: Construction Accounting Systems
sw 4
Chapter 3:Accounting Transactions 7
Chapter 4:More Construction Accounting 23
Chapter 5:Depreciation 34
Chapter 6:Analysis of FinancialStatements
sw 50
Chapter 7:Managing Costs 58
Chapter 8:Determining Labor Burden 62
Chapter 9: Managing GeneralOverhead Costs 65
Chapter 10:Setting Profit Margins for Bidding
sw 67
Chapter 11:Profit CenterAnalysis 70
Chapter 12:CashFlows For ConstructionProjects
sw 75
Chapter 13: Projecting Income Taxes 87
Chapter 14:CashFlows for aConstructionCompany 91
Chapter 15:Time Value ofMoney 93
Chapter 16: Financing aCompany’sFinancialNeeds 99
Chapter 17: Making FinancialDecisions 111
Chapter 18: Income Taxes and FinancialDecisions
sw 130
Construction Accounting and Financial Management,
, iii
Construction Accounting and Financial Management,
, NewtotheFourthEdition
The majorchanges tothefourthedition includethefollowing
sw sw
Thebusinessfailurerateforconstructioncompanies inChapter 1 havebeen u
pdated.
Sectionsoncost segregationand bonusdepreciationhavebeenadded to Chapter 5.
Thediscussionoftypical medianratios inChapter6 hasbeenupdated.
A sectiononthe monitoring and controllingprocesshasJbeenadded to Chapter 7.
sw sw
A sectionon managingdesign-build costs hasbeen addedto Chapter 7.
sw sw
Thewages, socialsecurity, and Medicarecostswereupdated inChapters8,9,a nd
14.
Aweeklycash flowproblemhasJbeenadded to Chapter12.
The incometax regulations inChapter 13have beenupdatedto incorporate pr
sw
ovisions ofThe Tax Cuts and Jobs Act passed in December 2017.
TheprojectcashflowsJusedtodevelopan annualcashflowforaconstruction co m
panyhavebeenexpandedto coverthe entireproject (including work doneinth epri sw
oryear)andthecalculationoftheunderbillings/overbillings hasbeeninclud ed in C
sw
hapter 14.
Theeffectsoftaxesondecisionhas beenupdatedinChapter18toincorporatethe Ta
sw sw sw
x Cuts and Jobs Act.
The Instructor’s Manualincludes alist of learning objectives, instructional hints, suggeste d
activities,and resourcesforeachchapter.Filesforthefigures andtablesin thetextbook aref
sw sw
oundontheinstructor’s website.It is myhopethattheseresourceswillmakeit easier forcour
sw sw sw sw
seinstructorsto teachthematerialinameaningfulmanner.Becausethecoursest hatusethis s
textbook arequite diverse, it is impossible toorganize the chapters into oneb est order. Each
sw sw
instructorshould considerhisor herindividualprogramanddetermine whi ch chapters need
to be taught and in what order.
Bestwishes,
StevenJ. Peterson, MBA, PE
Construction Accounting and Financial Management,
4th Edition Steven J. Peterson
Chapters 1 - 18, Complete Newest Version
Construction Accounting and Financial Management,
, CONTENTS
Newtothe FourthEdition 1
Chapter 1: Construction FinancialManagement 2
Chapter 2: Construction Accounting Systems
sw 4
Chapter 3:Accounting Transactions 7
Chapter 4:More Construction Accounting 23
Chapter 5:Depreciation 34
Chapter 6:Analysis of FinancialStatements
sw 50
Chapter 7:Managing Costs 58
Chapter 8:Determining Labor Burden 62
Chapter 9: Managing GeneralOverhead Costs 65
Chapter 10:Setting Profit Margins for Bidding
sw 67
Chapter 11:Profit CenterAnalysis 70
Chapter 12:CashFlows For ConstructionProjects
sw 75
Chapter 13: Projecting Income Taxes 87
Chapter 14:CashFlows for aConstructionCompany 91
Chapter 15:Time Value ofMoney 93
Chapter 16: Financing aCompany’sFinancialNeeds 99
Chapter 17: Making FinancialDecisions 111
Chapter 18: Income Taxes and FinancialDecisions
sw 130
Construction Accounting and Financial Management,
, iii
Construction Accounting and Financial Management,
, NewtotheFourthEdition
The majorchanges tothefourthedition includethefollowing
sw sw
Thebusinessfailurerateforconstructioncompanies inChapter 1 havebeen u
pdated.
Sectionsoncost segregationand bonusdepreciationhavebeenadded to Chapter 5.
Thediscussionoftypical medianratios inChapter6 hasbeenupdated.
A sectiononthe monitoring and controllingprocesshasJbeenadded to Chapter 7.
sw sw
A sectionon managingdesign-build costs hasbeen addedto Chapter 7.
sw sw
Thewages, socialsecurity, and Medicarecostswereupdated inChapters8,9,a nd
14.
Aweeklycash flowproblemhasJbeenadded to Chapter12.
The incometax regulations inChapter 13have beenupdatedto incorporate pr
sw
ovisions ofThe Tax Cuts and Jobs Act passed in December 2017.
TheprojectcashflowsJusedtodevelopan annualcashflowforaconstruction co m
panyhavebeenexpandedto coverthe entireproject (including work doneinth epri sw
oryear)andthecalculationoftheunderbillings/overbillings hasbeeninclud ed in C
sw
hapter 14.
Theeffectsoftaxesondecisionhas beenupdatedinChapter18toincorporatethe Ta
sw sw sw
x Cuts and Jobs Act.
The Instructor’s Manualincludes alist of learning objectives, instructional hints, suggeste d
activities,and resourcesforeachchapter.Filesforthefigures andtablesin thetextbook aref
sw sw
oundontheinstructor’s website.It is myhopethattheseresourceswillmakeit easier forcour
sw sw sw sw
seinstructorsto teachthematerialinameaningfulmanner.Becausethecoursest hatusethis s
textbook arequite diverse, it is impossible toorganize the chapters into oneb est order. Each
sw sw
instructorshould considerhisor herindividualprogramanddetermine whi ch chapters need
to be taught and in what order.
Bestwishes,
StevenJ. Peterson, MBA, PE
