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 Accounting and Financial Management,
, CONTENTS
NewmtomthemFourthmEdition 1
Chapterm1:mConstructionmFinancialmManagement 2
Chapterm2:mConstructionmAccountingmSystems 4
Chapterm3:mAccountingmTransactions 7
Chapterm4:mMoremConstructionmAccounting 23
Chapterm5:mDepreciation 34
Chapterm6:mAnalysismofmFinancialmStatements 50
Chapterm7:mManagingmCosts 58
Chapterm8:mDeterminingmLabormBurden 62
Chapterm9:mManagingmGeneralmOverheadmCosts 65
Chapterm10:mSettingmProfitm MarginsmformBidding 67
Chapterm11:mProfitm CentermAnalysis 70
Chapterm12:mCashmFlowsmFormConstructionmProjects 75
Chapterm13:mProjectingmIncomemTaxes 87
Chapterm14:mCashmFlowsmformamConstructionmCompany 91
Chapterm15:mTimemValuemofmMoney 93
Chapterm16:mFinancingmamCompany’smFinancialmNeeds 99
Chapterm17:mMakingmFinancialmDecisions 111
Chapterm18:mIncomemTaxesmandmFinancialmDecisions 130
Construction Accounting and Financial Management,
, iii
Construction Accounting and Financial Management,
, New to the Fourth Edition
m m m m
Themmajormchangesmtomthemfourthmeditionmincludemthemfollowing
• ThembusinessmfailuremratemformconstructionmcompaniesminmChapterm1mhavem
beenmupdated.
• SectionsmonmcostmsegregationmandmbonusmdepreciationmhavembeenmaddedmtomChapterm5.
• ThemdiscussionmofmtypicalmmedianmratiosminmChapterm6mhasmbeenmupdated.
• AmsectionmonmthemmonitoringmandmcontrollingmprocessmhasmbeenmaddedmtomChapterm7.
• Amsectionmonmmanagingmdesign-buildmcostsmhasmbeenmaddedmtomChapterm7.
• Themwages,msocialmsecurity,mandmMedicaremcostsmweremupdatedminmChaptersm
8,m9,mandm14.
• AmweeklymcashmflowmproblemmhasmbeenmaddedmtomChapterm12.
• ThemincomemtaxmregulationsminmChapterm13mhavembeenmupdatedmtomincorp
oratemprovisionsmofmThemTaxmCutsmandmJobsmActmpassedminmDecemberm2017
.
• Themprojectmcashmflowsmusedmtomdevelopmanmannualmcashmflowmformamconstructio
nmcompanymhavembeenmexpandedmtomcovermthementiremprojectm(includingmworkm
doneminmthempriormyear)mandmthemcalculationmofmthemunderbillings/overbillingsmh
asmbeenmincludedminmChapterm14.
• ThemeffectsmofmtaxesmonmdecisionmhasmbeenmupdatedminmChapterm18mtomincorpora
temthemTaxmCutsmandmJobsmAct.
ThemInstructor’smManualmincludesmamlistmofmlearningmobjectives,minstructionalmhints,msugg
estedmactivities,mandmresourcesmformeachmchapter.mFilesmformthemfiguresmandmtablesminmthe
mtextbookmaremfoundmonmtheminstructor’smwebsite.mItmismmymhopemthatmthesemresourcesmw
illmmakemitmeasiermformcourseminstructorsmtomteachmthemmaterialminmammeaningfulmmanner
.mBecausemthemcoursesmthatmusemthismtextbookmaremquitemdiverse,mitmismimpossiblemtomorg
anizemthemchaptersmintomonembestmorder.mEachminstructormshouldmconsidermhismormhermind
ividualmprogrammandmdeterminemwhichmchaptersmneedmtombemtaughtmandminmwhatmorder.
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 Accounting and Financial Management,
, CONTENTS
NewmtomthemFourthmEdition 1
Chapterm1:mConstructionmFinancialmManagement 2
Chapterm2:mConstructionmAccountingmSystems 4
Chapterm3:mAccountingmTransactions 7
Chapterm4:mMoremConstructionmAccounting 23
Chapterm5:mDepreciation 34
Chapterm6:mAnalysismofmFinancialmStatements 50
Chapterm7:mManagingmCosts 58
Chapterm8:mDeterminingmLabormBurden 62
Chapterm9:mManagingmGeneralmOverheadmCosts 65
Chapterm10:mSettingmProfitm MarginsmformBidding 67
Chapterm11:mProfitm CentermAnalysis 70
Chapterm12:mCashmFlowsmFormConstructionmProjects 75
Chapterm13:mProjectingmIncomemTaxes 87
Chapterm14:mCashmFlowsmformamConstructionmCompany 91
Chapterm15:mTimemValuemofmMoney 93
Chapterm16:mFinancingmamCompany’smFinancialmNeeds 99
Chapterm17:mMakingmFinancialmDecisions 111
Chapterm18:mIncomemTaxesmandmFinancialmDecisions 130
Construction Accounting and Financial Management,
, iii
Construction Accounting and Financial Management,
, New to the Fourth Edition
m m m m
Themmajormchangesmtomthemfourthmeditionmincludemthemfollowing
• ThembusinessmfailuremratemformconstructionmcompaniesminmChapterm1mhavem
beenmupdated.
• SectionsmonmcostmsegregationmandmbonusmdepreciationmhavembeenmaddedmtomChapterm5.
• ThemdiscussionmofmtypicalmmedianmratiosminmChapterm6mhasmbeenmupdated.
• AmsectionmonmthemmonitoringmandmcontrollingmprocessmhasmbeenmaddedmtomChapterm7.
• Amsectionmonmmanagingmdesign-buildmcostsmhasmbeenmaddedmtomChapterm7.
• Themwages,msocialmsecurity,mandmMedicaremcostsmweremupdatedminmChaptersm
8,m9,mandm14.
• AmweeklymcashmflowmproblemmhasmbeenmaddedmtomChapterm12.
• ThemincomemtaxmregulationsminmChapterm13mhavembeenmupdatedmtomincorp
oratemprovisionsmofmThemTaxmCutsmandmJobsmActmpassedminmDecemberm2017
.
• Themprojectmcashmflowsmusedmtomdevelopmanmannualmcashmflowmformamconstructio
nmcompanymhavembeenmexpandedmtomcovermthementiremprojectm(includingmworkm
doneminmthempriormyear)mandmthemcalculationmofmthemunderbillings/overbillingsmh
asmbeenmincludedminmChapterm14.
• ThemeffectsmofmtaxesmonmdecisionmhasmbeenmupdatedminmChapterm18mtomincorpora
temthemTaxmCutsmandmJobsmAct.
ThemInstructor’smManualmincludesmamlistmofmlearningmobjectives,minstructionalmhints,msugg
estedmactivities,mandmresourcesmformeachmchapter.mFilesmformthemfiguresmandmtablesminmthe
mtextbookmaremfoundmonmtheminstructor’smwebsite.mItmismmymhopemthatmthesemresourcesmw
illmmakemitmeasiermformcourseminstructorsmtomteachmthemmaterialminmammeaningfulmmanner
.mBecausemthemcoursesmthatmusemthismtextbookmaremquitemdiverse,mitmismimpossiblemtomorg
anizemthemchaptersmintomonembestmorder.mEachminstructormshouldmconsidermhismormhermind
ividualmprogrammandmdeterminemwhichmchaptersmneedmtombemtaughtmandminmwhatmorder.
Bestmwishes,
StevenmJ.mPeterson,mMBA,mPE
