Construction Accounting And Financial Management 4th Edition Steven J. Peterson - Solutions

Determine the annual equivalent for Problem 17. Should your company purchase the dump truck?Data From Problem 17: 17. Your company is looking at purchasing a dump truck at a cost of $65,000. The
Determine the annual equivalent for Problem 18.Should your company purchase the loader?Data From Problem 18: 18. Your company is looking at purchasing a loader at a cost of $125,000. The loader would
Determine the rate of return for Problem 17.Should your company purchase the dump truck?Data From Problem 17: 17. Your company is looking at purchasing a dump truck at a cost of $65,000. The truck
Determine the incremental rate of return for Problem 19. Which track hoe should your company choose?Data From Problem 19: 19. Your company needs to purchase a new track hoe and has narrowed the
Determine the incremental rate of return for Problem 20. Which track hoe should your company choose?Data From Problem 20: 20. Your company needs to purchase a new track hoe and has narrowed the
Draw a project balance chart for Problem 17.Data From Problem 17: 17. Your company is looking at purchasing a dump truck at a cost of $65,000. The truck would have a useful life of five years. At the
Draw a project balance chart for Problem 18.Data From Problem 18: 18. Your company is looking at purchasing a loader at a cost of $125,000. The loader would have a useful life of
You developed an overhead budget for a construction company. Historically, the company’s construction costs are 89% of revenues.What volume of work does the construction company need to achieve in
Modify the spread sheet to handle development costs.
What is a “What if” analysis?
ABC Framing has been hired to frame a light commercial building. The project began on July 2 and was completed on August 9.The following is a list of accounting transactions associated with the
Define committed costs and provide two examples of committed costs?
How many years does it take to depreciate a piece of equipment with a five-year recovery period using MACRS? Why does this happen?
For the current tax year, what are the maximum Section 179 deductions and the amount where Section 179 begins to be phased out?
In 2010, your company purchased a front-end loader for $$150,000,$ a dump truck for $$85,000,$ and a dumping trailer (pup) for the dump truck for $$38,000.$ The front-end loader was placed in
When calculating a ratio with numbers from the balance sheet and income statement, why must you use the balance sheets from the beginning and end of the period covered by the income statement?
Determine the quick ratio for the commercial construction company in Figures 6-1 and 6-2 . What insight does this give you into the company’s financial operations?Data From Figures 6-1Figure 6-2
Determine the current ratio for the commercial construction company in Figures 6-1 and 6-2.What insight does this give you into the company’s financial operations?Data From Figure 6-1 Data From
Determine the current liabilities to net worth ratio for the commercial construction company in Figures 6-1 and 6-2 . What insight does this give you into the company’s financial operations?Data
Determine the debt to equity ratio for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the fixed assets to net worth ratio for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the current assets to total assets ratio for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the collection period—with and without retention—and receivable turns for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the average age of accounts payable and payable turns for the commercial construction company. Use only the material and subcontract construction costs to calculate the average of accounts
Determine the assets to revenues ratio for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the working capital turns for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the accounts payable to revenues ratio for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the gross profit margin for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the general overhead ratio for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the pretax and after-tax profit margins for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the return on assets for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the pretax return on equity and after-tax return on equity for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the degree of fixed asset newness for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the quick ratio for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the current ratio for the commercial construction company . What insight does this give you into the company’s financial operations?
Determine the current liabilities to net worth ratio for the commercial construction company. What insight does this give you into the company’s financial operations?
Determine the months in backlog using the work on hand spreadsheet. The company’s revenues for the last 12 months were $$1,607,000$.
Determine the months in backlog using the work on hand spreadsheet. The company’s revenues for the last 12 months were $$357,298$.
Set up a spreadsheet to calculate the financial ratios or the company.
The construction company needs to lease an excavator. The company has the option to lease it with an operating lease or a capital lease with a present value of $$150,000$. Using the spreadsheet you
The financial information through extracted from Granite Construction Incorporated’s 2003 annual (10-K) report filed with the Securities and Exchange Commission. Using the financial ratios and the
Why is it important to have a realistic budget for a project?
The ACWP at the end of the second week for the project in Problem 10 is $$37,900$ Determine the CPI for the project.Data From Problem 11: 11. A project consists of six tasks. Task A is scheduled to
The ACWP at the end of the third week for the project in Problem 11 is $$16,500$ Determine the CPI for the project.Data From Problem 11: 11. A project consists of six tasks. Task A is scheduled to
Determine the total estimated cost at completion and estimated cost to complete for the project in Problem 12, assuming the CPI remains the same through the remainder of the job.Data From Problem 12:
Determine the total estimated cost at completion and estimated cost to complete for the project in Problem 13, assuming the CPI remains the same through the remainder of the job.Data From Problem
Create a cost-loaded spreadsheet like the one shown in Figure 7-5 . The spreadsheet should handle 12 weeks and 20 tasks.Data From Figure 7-5 Task Mobilization Cost Start Finish Week 1 Week 2 Week 3
Using the journal articles, newspapers, and the Internet, find one article that discusses the reasons why construction companies fail or outlines the failure of a specific construction company.
What are some reasons that you may drop a customer?
In Figure 2-8, why was equipment repairs and maintenance broken down into repairs, maintenance, and tires?Figure 2-8 ###.##.#####A JOB- PHASE COST CODE COST TYPE- FIGURE 2-8 Sample Job Cost Code
What are the three ways that job-based profit centers may be evaluated? Why might a company choose to do more work in a job type that had a lower gross profit margin?
Create a work on hand worksheet like the one in Figure 4-3. 1234567 7 A 4 Job 8 B C D E Total Current Estimated Estimated Contract Cost at Profit # Job Name Amount Completion (C-D) LL F H I
Create a committed cost spreadsheet like the one in Figure 4-1. 123456 A 789 B 6 Code Description C D E Total Original Change Estimate Estimate Orders (C+D) FL Committed Costs G H Non-
Determine the estimated cost of the work performed each week given the tasks—with their associated costs and schedules—shown in Table 7-4. When a task spans more than one week, the costs should
Determine the annual budget for office utilities the data from the past 12 months shown in Figure 9-7. Utility costs are expected to increase by 8% per year due to inflation. None of the company’s
You have been running a construction company out of your home with your spouse helping you keep the books. The company has grown and has begun to take up too much of your and your spouse’s time.
Determine the annual budget for office utilities using the data from the past 12 months shown in 7. Utility Figure 9-osts are expected to increase by 7% per year due to inflation. The company is
Prepare a depreciation schedule to be used for tax purposes for a $110,000 railroad spur (track) using the convention. The equipment was placed in service during the second quarter of the
In 2018, your company purchased a front-end loader for $150,000, a dump truck for $85,000, and a dumping trailer for the dump truck for $38,000. The front-end loader was placed in service in
Visit your institution’s library and find out what sources of information are available about typical financial ratios for construction companies. What are the typically financial ratios for a
Mt. Ogden Homes started out five years ago building a few homes a year. During the last few years, they have experienced rapid growth and expect to build 50 to 60 homes next year. Although the number
How does employee turnover affect the labor burden costs?
What are the two types of general overhead budgets and how are they different?
You are preparing a general overhead budget to be used to project your company’s annual cash flow. How would you handle the depreciation of the owner’s truck?
Why must meals and entertainment be kept separate in the general overhead?
Why is 06110 Rough Carpentry separate from 06120 Lumber in the job cost codes found in Figure 2-6? Code Description 01000 GENERAL REQUIREMENTS 01100 Supervision 01400 General Labor 01600 Temporary
Why are fixed costs fixed only over a specified region?
Determine the projected costs for utilities in year 5. The inflation rate has been determined to be 0.032 and the initial cost is $57.39.
How can specializing in a market segment help improve a company’s profitability?
What are some of the ways a company can increase its pretax profit margin?
What are some of the ways a company can increase its contribution margin?
What are the pros and cons of raising prices?
How can the estimator increase the profit the company makes on a project?
A construction company is negotiating on a construction project with a six-month duration. On the last day of each month the construction company may bill the owner for the work completed during the
How can the project management team increase the profit the company makes on a project?
A construction company is bidding on a contract to build homes for a developer. The project consists of two types of homes and is scheduled to begin in September. The expected monthly housing starts
What are the six ways to allocate overhead to profit centers? Which would you use to allocate inventory costs? Which would you use when looking at eliminating a profit center?
A construction company is negotiating on a construction project with a six-month duration. On the last day of each month the construction company may bill the owner for the work completed during the
Why is it important for profit center managers to have the authority and resources to run the profit center?
How can a company be profitable and still fail financially?
How does subcontracting out labor that would normally be performed in-house affect the cash flow for a construction project?
Why should the profit and overhead markup on the project be included when calculating the cash needs for a construction project?
When does the greatest need for cash occur on a construction project?
How does the rate of progress on a project affect the project’s need for cash?
How does retention affect the project’s need for cash?
How can the cash needs of a project be reduced?
Your company needs to purchase a new track hoe and has narrowed the selection to two pieces of equipment. The first track hoe costs $100,000 and costs $32.00 per hour to operate. The second track hoe
How can fluctuations in taxable income affect the NPV?
What uniform series of cash flows is equivalent to a $150,000 cash flow occurring today if the uniform series of cash flows occur at the end of each month for he next 15 years and the periodic
Determine the monthly cash flows and total cash generated at the end of each month and just before the payment is received for the construction of a house with the budget and schedule shown in Table
Prepare a cash flow projection for a construction company that currently has two projects under contract for the next year and anticipates picking up a third and fourth project during the year. The
How does the choice of company type affect the taxes of a company?
In general, how are taxable income losses handled?
What is the difference between effective tax rate and marginal tax rate?
How does depreciation affect taxes?
Using a tax rate of 21%, determine the amount of federal income tax that is due for a C corporation that has a taxable income of $356,000.
Draw a cash flow diagram for the cash flows in Table 15-3. Year Receipts ($) Disbursements ($) 0 1 0 1,000 0 4,750 2 2,000 0 3 2,000 0 4 1,000 0
Your company paid employees who were eligible for work opportunity credit $25,000 last year. Of these wages, $21,000 is eligible for a tax credit of 40% of the wages. The remaining wages are eligible
What are the five steps for developing a cash flow for a construction company?
What are the advantages of using a spreadsheet to develop a cash flow for a construction company?

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Construction Accounting And Financial Management 4th Edition Steven J. Peterson - Solutions

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