Description

For all courses in construction accounting and construction finance, and for courses in engineering economics taught in construction management programs.

This book helps construction professionals and construction management students master the principles of financial management, and adapt and apply them to the challenge of profitably managing construction companies. It integrates content that has traditionally been taught through separate accounting, finance, and engineering economics texts. Students learn how to account for a construction company’s financial resources; how to manage its costs, profits, and cash flows; how to evaluate different sources of funding a company’s cash needs; and how to quantitatively analyze financial decisions. Readers gain hands-on experience through 220 example problems and over 390 practice problems, many of them based on situations actually encountered by the author. This edition adds more than 100 new discussion questions, and presents financial equations and accounting transactions more visually to support more intuitive learning.

Features

For all courses in construction accounting and construction finance, and for courses in engineering economics taught in construction management programs.

This book helps construction professionals and construction management students master the principles of financial management, and adapt and apply them to the challenge of profitably managing construction companies. It integrates content that has traditionally been taught through separate accounting, finance, and engineering economics texts. Students learn how to account for a construction company’s financial resources; how to manage its costs, profits, and cash flows; how to evaluate different sources of funding a company’s cash needs; and how to quantitatively analyze financial decisions. Readers gain hands-on experience through 220 example problems and over 390 practice problems, many of them based on situations actually encountered by the author. This edition adds more than 100 new discussion questions, and presents financial equations and accounting transactions more visually to support more intuitive learning.

Hallmark Features

Brings together comprehensive construction accounting and finance information, so students don’t have to search multiple texts or struggle to integrate disconnected concepts and techniques. Thoroughly covers general business accounting, financial principles, and engineering economics in a single book.

100% focused on the specific finance and accounting challenges faced by construction managers and professionals—explaining why construction financial management is unique, and defining the role of a construction financial manager; presenting techniques and problems that are tightly focused on construction – for example, extensive coverage of long-term contracts.

Guides students step-by-step through arriving at accurate solutions. Presents easy-to-understand, step-by-step techniques, with at least example provided for each type of problem, and specific guidance on solving problems with business calculators.

Offers students extensive hands-on practice in every chapter. Presents more than 390 practice problems and 220 example problems covering all facets of construction accounting and finance.

Teaches students how to solve financial problems with Microsoft Excel or other modern spreadsheet software. Contains sidebars demonstrating how to use Excel to solve a wide range of accounting and finance problems with Microsoft Excel; includes more than 50 problems that use spreadsheets, with sample spreadsheet solutions presented in the Instructor's Manual.

New to this Edition

This edition adds stacked equations and accounting transaction figures to make construction accounting easier to understand, and adds more than 100 discussion questions to promote critical thinking and student engagement.

New! Adds discussion questions at the end of each chapter—facilitating classroom discussion and leading readers through key concepts

• Encourages students to think critically, engage the material, and participate more actively in class

New! Presents equations in a stacked format—making them easier to read, understand, and use

• Helps students comprehend and master financial equations more rapidly

Updated! Includes revised coverage of the tax code—reflecting the latest rates and laws

• Helps students understand how the current tax code impacts profitability and the economic viability of projects

Improved! Figures make accounting transactions easier to understand—showing how balances are maintained between the balance sheet, income statement, job cost ledger, and the equipment ledger

• Gives students a clearer, more visual, more intuitive understanding of accounting transactions

Table of Contents

 

Part I. Introduction to Construction Financial Management

1. Construction Financial Management

 

Part II. Accounting for Financial Resources

2. Construction Accounting Systems

3. Accounting Transactions

4. More Construction Accounting

5. Depreciation

6. Analysis of Financial Statements

 

Part III. Managing Costs and Profits

7. Managing Costs

8. Determining Labor Burden

9. Managing General Overhead Costs

10. Setting Profit Margins for Bidding

11. Profit Center Analysis

 

Part IV. Managing Cash Flows

12. Cash Flows for Construction Projects

13. Projecting Income Taxes

14. Cash Flows for Construction Companies

15. Time Value of Money

16. Financing a Company’s Financial Needs

 

Part V. Making Financial Decisions

17. Tools for Making Financial Decisions

18. Income Taxes and Financial Decisions

 

Appendix A. Computerized Accounting Systems

Appendix B. Excel Primer

Appendix C. Trend Analysis

Appendix D. Derivation of Selected Equations

Appendix E. Interest Factors

Appendix F. Glossary

Appendix G. List of Variables

Index