{"product_id":"financial-management-and-accounting-fundamentals-for-construction-hardback-9780470182710","title":"Financial Management and Accounting Fundamentals for Construction (Hardback) 9780470182710","description":"\u003cfont face=\"Georgia\"\u003e\r\n\u003cp\u003e\u003cfont size=\"6\"\u003eFinancial Management and Accounting Fundamentals for Construction\u003c\/font\u003e\u003cbr\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003c\/p\u003e\n\u003cp\u003e\u003cfont size=\"4\"\u003eDaniel W. Halpin (Author), Bolivar A. Senior (Author)\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e9780470182710, Wiley\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eHardback, published 6 October 2009\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e320 pages, Drawings: 100 B\u0026amp;W, 0 Color\u003cbr\u003e23.6 x 16.3 x 2.3 cm, 0.522 kg\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003cp align=\"justify\"\u003e\u003cstrong\u003e\u003cfont size=\"3\"\u003e\u003cp\u003e\u003cb\u003eTECHNOLOGY\/ENGINEERING\/CIVIL\u003c\/b\u003e\t \u003c\/p\u003e\n\u003cp\u003e\u003cb\u003eSUCCESSFUL FINANCIAL MANAGEMENT IN THE CONSTRUCTION INDUSTRY BEGINS WITH THIS HANDS-ON GUIDE\u003c\/b\u003e \u003c\/p\u003e\n\u003cp\u003e\u003cb\u003eWhile construction professionals are skilled in the technical side of their work, they often find the financial management aspect of the business daunting.\u003c\/b\u003e Financial Management and Accounting Fundamentals for Construction\u003cb\u003e will help you better understand and navigate the financial decisions that are part of every construction project.\u003c\/b\u003e \u003c\/p\u003e\n\u003cp\u003e\u003cb\u003eThis book is a compact summary of the basic financial skills that a construction professional must have to be successful in the management of a construction company and its projects. Its topics address many of the questions that any construction administrator will face, such as:\u003c\/b\u003e \u003c\/p\u003e\n\u003cul\u003e \u003cli\u003eHow to organize and use a company's financial reports\u003c\/li\u003e \u003cli\u003eWhat amount of cash must be made available to the contractor to complete a project\u003c\/li\u003e \u003cli\u003eWhy the early payment of supplier invoices can enhance profitability\u003c\/li\u003e \u003cli\u003eHow to quantify the time value of money in financial decisions\u003c\/li\u003e \u003cli\u003eWhat tax amount is owed by a company and how it impacts the bottom line\u003c\/li\u003e \u003cli\u003eHow to control project costs\u003c\/li\u003e \u003cli\u003eWhat financial sources are available to a construction contractor for capital expansion\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eIn this text, you will learn about accounting fundamentals, project-related financial matters, and company level financial issues—three factors that are key to your career success. An ideal reference for students of construction management and engineering, as well as professionals who need a quick refresher when dealing with cost control analysis and other financial issues, this text also offers: \u003c\/p\u003e\n\u003cul\u003e \u003cli\u003eEasy-to-understand coverage of financial concepts specific to the construction industry, including business taxation, project control, engineering economy, and financial forecasting\u003c\/li\u003e \u003cli\u003eNumerous worked examples, plus end-of-chapter review questions and exercises\u003c\/li\u003e \u003cli\u003eHelpful appendices that present the structure of a typical chart of accounts, the flow of transactions through a construction accounting system, and tables required for computing interest and the time value of money\u003c\/li\u003e \u003c\/ul\u003e\u003c\/font\u003e\u003c\/strong\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e\u003cp\u003ePreface ix\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 INTRODUCTION 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Big Paradox 1\u003c\/p\u003e \u003cp\u003eWhat Is Financial Management? 2\u003c\/p\u003e \u003cp\u003eFirst Stop: Financial Accounting 2\u003c\/p\u003e \u003cp\u003eWhy Construction Accounting Is Different from Accounting in Other Business Sectors 4\u003c\/p\u003e \u003cp\u003eWho Is at Risk? 5\u003c\/p\u003e \u003cp\u003eProjects: The Output of the Construction Process 6\u003c\/p\u003e \u003cp\u003eProject-Level Controls 7\u003c\/p\u003e \u003cp\u003eTime Value of Money 8\u003c\/p\u003e \u003cp\u003eEntrepreneurial Issues 8\u003c\/p\u003e \u003cp\u003eReview Questions and Exercises 9\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 UNDERSTANDING FINANCIAL STATEMENTS 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 11\u003c\/p\u003e \u003cp\u003eWhy Should You Care about Accounting? 12\u003c\/p\u003e \u003cp\u003eGenerally Accepted Accounting Principles 12\u003c\/p\u003e \u003cp\u003eCash and Accrual Bases: Two Ways to Look at Accounting 13\u003c\/p\u003e \u003cp\u003eCash Basis of Accounting 14\u003c\/p\u003e \u003cp\u003eAccrual Basis of Accounting 15\u003c\/p\u003e \u003cp\u003eAccounts 16\u003c\/p\u003e \u003cp\u003eAccount Hierarchy 16\u003c\/p\u003e \u003cp\u003eFinancial Reports 17\u003c\/p\u003e \u003cp\u003eBookkeeping 19\u003c\/p\u003e \u003cp\u003eThe Balance Sheet 20\u003c\/p\u003e \u003cp\u003eBalance Sheet Layout 21\u003c\/p\u003e \u003cp\u003eBalance Sheet Account Categories in Detail 21\u003c\/p\u003e \u003cp\u003eThe Fundamental Accounting Equation 22\u003c\/p\u003e \u003cp\u003eAsset Values 23\u003c\/p\u003e \u003cp\u003eThe Fundamental Equation and Owners’ Risk 24\u003c\/p\u003e \u003cp\u003eBalance Sheet for Fudd Associates, Inc. 24\u003c\/p\u003e \u003cp\u003eKey Accounts 26\u003c\/p\u003e \u003cp\u003eThe Income Statement 29\u003c\/p\u003e \u003cp\u003eComponents of an Income Statement – More Details 32\u003c\/p\u003e \u003cp\u003eThe Statement of Cash Flows 35\u003c\/p\u003e \u003cp\u003eContract Backlog 37\u003c\/p\u003e \u003cp\u003ePublic Corporations 38\u003c\/p\u003e \u003cp\u003eReview Questions and Exercises 39\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 ANALYZING COMPANY FINANCIAL DATA 43\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 43\u003c\/p\u003e \u003cp\u003eVertical and Horizontal Analyses 44\u003c\/p\u003e \u003cp\u003eVertical Analysis: Financial Ratios 44\u003c\/p\u003e \u003cp\u003eLiquidity Indicators: Can This Company Get Cash in a Hurry? 45\u003c\/p\u003e \u003cp\u003eCurrent Ratio 45\u003c\/p\u003e \u003cp\u003eQuick Ratio 46\u003c\/p\u003e \u003cp\u003eWorking Capital 47\u003c\/p\u003e \u003cp\u003eProfitability Indicators: Is This Company Making Enough Profit? 48\u003c\/p\u003e \u003cp\u003eReturn on Equity 48\u003c\/p\u003e \u003cp\u003eReturn on Revenue 50\u003c\/p\u003e \u003cp\u003eReturn on Assets 51\u003c\/p\u003e \u003cp\u003eEarnings Per Share 51\u003c\/p\u003e \u003cp\u003eEfficiency Indicators: How Long Does It Take a Company to Turn over Its Money? 52\u003c\/p\u003e \u003cp\u003eAverage Age of Inventory 53\u003c\/p\u003e \u003cp\u003eAverage Age of Accounts Receivable (Collection Period) 55\u003c\/p\u003e \u003cp\u003eAverage Age of Accounts Payable 56\u003c\/p\u003e \u003cp\u003eOther Average Ages 57\u003c\/p\u003e \u003cp\u003eOperating Cycle 57\u003c\/p\u003e \u003cp\u003eTurnover Ratios 58\u003c\/p\u003e \u003cp\u003eRevenue to Assets Turnover 58\u003c\/p\u003e \u003cp\u003eCapital Structure Indicators: How Committed Are the Owners? 59\u003c\/p\u003e \u003cp\u003eDebt to Equity 60\u003c\/p\u003e \u003cp\u003eAssets to Equity (Leverage) 60\u003c\/p\u003e \u003cp\u003eOther Indicators 60\u003c\/p\u003e \u003cp\u003eHorizontal Analysis: Tracking Financial Trends 62\u003c\/p\u003e \u003cp\u003eTime Series Graphs 62\u003c\/p\u003e \u003cp\u003eIndex-Number Trend Series 63\u003c\/p\u003e \u003cp\u003eConclusion 63\u003c\/p\u003e \u003cp\u003eReview Questions and Exercises 64\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 ACCOUNTING BASICS 71\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 71\u003c\/p\u003e \u003cp\u003eTransaction Processing 71\u003c\/p\u003e \u003cp\u003eJournalizing the Transaction 73\u003c\/p\u003e \u003cp\u003eA Transaction to Enter Initializing Capital 74\u003c\/p\u003e \u003cp\u003eA Vendor Billing Transaction 74\u003c\/p\u003e \u003cp\u003eA Billing to the Client 76\u003c\/p\u003e \u003cp\u003ePosting Entries to the Ledger 78\u003c\/p\u003e \u003cp\u003eRelationship of Work-in-Progress and Revenue\/Expense Accounts 80\u003c\/p\u003e \u003cp\u003eClosing the Accounting Cycle 82\u003c\/p\u003e \u003cp\u003eRecognition of Income 83\u003c\/p\u003e \u003cp\u003ePercentage-of-Completion Method of Income Recognition 83\u003c\/p\u003e \u003cp\u003eCompleted-Contract Method of Income Recognition 85\u003c\/p\u003e \u003cp\u003eTransactions during a Period 86\u003c\/p\u003e \u003cp\u003ePosting to the General Ledger during the Accounting Period 88\u003c\/p\u003e \u003cp\u003eClosing Actions at the End of the Period 91\u003c\/p\u003e \u003cp\u003eReview Questions and Exercises 93\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 PROJECT-LEVEL COST CONTROL 97\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eObjectives of Project-Level Cost Control in Construction 97\u003c\/p\u003e \u003cp\u003eUnique Aspects of Construction Cost Control 98\u003c\/p\u003e \u003cp\u003eTypes of Costs 99\u003c\/p\u003e \u003cp\u003eThe Construction Estimate 99\u003c\/p\u003e \u003cp\u003eCost Control System 101\u003c\/p\u003e \u003cp\u003eBuilding a Cost Control System 101\u003c\/p\u003e \u003cp\u003eCost Accounts 103\u003c\/p\u003e \u003cp\u003eCost Account Structure 104\u003c\/p\u003e \u003cp\u003eProject Cost Code Structure 106\u003c\/p\u003e \u003cp\u003eCost Accounts for Integrated Project Management 110\u003c\/p\u003e \u003cp\u003eEarned Value Analysis 113\u003c\/p\u003e \u003cp\u003eLabor Data Cost Collection 122\u003c\/p\u003e \u003cp\u003eReview Questions and Exercises 125\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 FORECASTING FINANCIAL NEEDS 129\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eImportance of Cash Management 129\u003c\/p\u003e \u003cp\u003eUnderstanding Cash Flow 129\u003c\/p\u003e \u003cp\u003eRetainage 131\u003c\/p\u003e \u003cp\u003eProject Cost, Value, and Cash Profiles 131\u003c\/p\u003e \u003cp\u003eCash Flow Calculation—A Simple Example 133\u003c\/p\u003e \u003cp\u003ePeak Financial Requirements 136\u003c\/p\u003e \u003cp\u003eGetting Help from the Owner 137\u003c\/p\u003e \u003cp\u003eOptimizing Cash Flow 138\u003c\/p\u003e \u003cp\u003eProject Cash Flow Estimates 141\u003c\/p\u003e \u003cp\u003eUsing Software for Cash Flow Computations 144\u003c\/p\u003e \u003cp\u003eCompany-Level Cash Flow Planning 145\u003c\/p\u003e \u003cp\u003eStrategic Cash Flow Management: “Cash Farming” 145\u003c\/p\u003e \u003cp\u003eProject and General Overhead 146\u003c\/p\u003e \u003cp\u003eFixed Overhead 148\u003c\/p\u003e \u003cp\u003eConsiderations in Establishing Fixed Overhead 149\u003c\/p\u003e \u003cp\u003eBreakeven Analysis 151\u003c\/p\u003e \u003cp\u003eBasic Relationships Governing the Breakeven Point 154\u003c\/p\u003e \u003cp\u003eReview Questions and Exercises 155\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 TIME VALUE OF MONEY AND EVALUATING INVESTMENTS 161\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 161\u003c\/p\u003e \u003cp\u003eTime Value of Money 162\u003c\/p\u003e \u003cp\u003eInterest 162\u003c\/p\u003e \u003cp\u003eSimple and Compound Interest 163\u003c\/p\u003e \u003cp\u003eNominal and Effective Rate 165\u003c\/p\u003e \u003cp\u003eEquivalence and MARR 166\u003c\/p\u003e \u003cp\u003eDiscount Rate 167\u003c\/p\u003e \u003cp\u003eImportance of Equivalence 167\u003c\/p\u003e \u003cp\u003eInflation 168\u003c\/p\u003e \u003cp\u003eSunk Costs 169\u003c\/p\u003e \u003cp\u003eCash Flow Diagrams 169\u003c\/p\u003e \u003cp\u003eAnnuities 171\u003c\/p\u003e \u003cp\u003eConditions for Annuity Calculations 173\u003c\/p\u003e \u003cp\u003eCalculating the Future Value of a Series of Payments 174\u003c\/p\u003e \u003cp\u003eSummary of Equivalence Formulas 175\u003c\/p\u003e \u003cp\u003eWorth Analysis Techniques: An Overview 176\u003c\/p\u003e \u003cp\u003ePresent Worth Analysis 179\u003c\/p\u003e \u003cp\u003eInvestments with Different Life Spans 180\u003c\/p\u003e \u003cp\u003eEquivalent Annual Worth (EAW) 181\u003c\/p\u003e \u003cp\u003eInternal Rate of Return 183\u003c\/p\u003e \u003cp\u003eLimitations of the IRR Method 185\u003c\/p\u003e \u003cp\u003eAn Example Involving Cost Recovery 186\u003c\/p\u003e \u003cp\u003eComparison Using EAW 188\u003c\/p\u003e \u003cp\u003eAn IRR Example—Owner Financing Using Bonds 191\u003c\/p\u003e \u003cp\u003eReview Questions and Exercises 194\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 CONSTRUCTION LOANS AND CREDIT 199\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 199\u003c\/p\u003e \u003cp\u003eThe Construction Financing Process 200\u003c\/p\u003e \u003cp\u003eA Sample Developmental Project 202\u003c\/p\u003e \u003cp\u003eThe Amount of the Loan 204\u003c\/p\u003e \u003cp\u003eHow Is the Cap Rate Determined? 205\u003c\/p\u003e \u003cp\u003eMortgage Loan Commitment 206\u003c\/p\u003e \u003cp\u003eConstruction Loan 206\u003c\/p\u003e \u003cp\u003eCommercial Lenders 208\u003c\/p\u003e \u003cp\u003eLines of Credit 209\u003c\/p\u003e \u003cp\u003eInterest Paid on Outstanding Balance 210\u003c\/p\u003e \u003cp\u003eCommitment Fees 211\u003c\/p\u003e \u003cp\u003eCompensating Balances 211\u003c\/p\u003e \u003cp\u003eClean-Up Requirement 212\u003c\/p\u003e \u003cp\u003eCollaterals 212\u003c\/p\u003e \u003cp\u003eAccounts Receivable Financing 213\u003c\/p\u003e \u003cp\u003eTrade Credits 213\u003c\/p\u003e \u003cp\u003eLong Term Financing 215\u003c\/p\u003e \u003cp\u003eLoans with End-of-Term Balloon Payments 216\u003c\/p\u003e \u003cp\u003eReview Questions and Exercises 218\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 THE IMPACT OF TAXES 219\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 219\u003c\/p\u003e \u003cp\u003eTypes of Taxes 220\u003c\/p\u003e \u003cp\u003eIncome Tax Systems 221\u003c\/p\u003e \u003cp\u003eAlternatives for Company Legal Organization 221\u003c\/p\u003e \u003cp\u003eSole Proprietorships 222\u003c\/p\u003e \u003cp\u003ePartnerships 222\u003c\/p\u003e \u003cp\u003eCorporations 222\u003c\/p\u003e \u003cp\u003eLimited Liability Partnerships and Companies 223\u003c\/p\u003e \u003cp\u003eOther Options 224\u003c\/p\u003e \u003cp\u003eTaxation of Business 224\u003c\/p\u003e \u003cp\u003eBusiness Deductions in General 227\u003c\/p\u003e \u003cp\u003eTaxable Income: Individuals 227\u003c\/p\u003e \u003cp\u003eItemized Deductions, Standard Deductions, and Personal\u003c\/p\u003e \u003cp\u003eExemptions 228\u003c\/p\u003e \u003cp\u003eThe Tax Significance of Depreciation 229\u003c\/p\u003e \u003cp\u003eCalculating Depreciation 230\u003c\/p\u003e \u003cp\u003eStraight Line Method 231\u003c\/p\u003e \u003cp\u003eThe Production Method 232\u003c\/p\u003e \u003cp\u003eDepreciation Based on Current Law 233\u003c\/p\u003e \u003cp\u003eMarginal Tax Rates 235\u003c\/p\u003e \u003cp\u003eTax Credits 238\u003c\/p\u003e \u003cp\u003eTax Payroll Withholding 239\u003c\/p\u003e \u003cp\u003eTax Payment Schedules 239\u003c\/p\u003e \u003cp\u003eMarginal, Average, and Effective Tax Rates 239\u003c\/p\u003e \u003cp\u003eNet Operating Losses 240\u003c\/p\u003e \u003cp\u003eTaxes on Dividends and Long-Term Capital Gains 242\u003c\/p\u003e \u003cp\u003eAlternative Minimum Tax 242\u003c\/p\u003e \u003cp\u003eSummary 243\u003c\/p\u003e \u003cp\u003eReview Questions and Exercises 243\u003c\/p\u003e \u003cp\u003eAPPENDIX A TYPICAL CHART OF ACCOUNTS 247\u003c\/p\u003e \u003cp\u003eAPPENDIX B FURTHER ILLUSTRATIONS OF TRANSACTIONS 251\u003c\/p\u003e \u003cp\u003eAPPENDIX C COMPOUND INTEREST TABLES 275\u003c\/p\u003e \u003cp\u003eReferences 301\u003c\/p\u003e \u003cp\u003eIndex 305\u003c\/p\u003e\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eSubject Areas: Civil engineering, surveying \u0026amp; building [\u003ca title=\"See our other books on Civil engineering, surveying \u0026amp; building\" href=\"https:\/\/freshlyprintedbooks.co.uk\/search?q=%22Civil%20engineering,%20surveying%20\u0026amp;%20building%20%5BTN%5D%22\"\u003eTN\u003c\/a\u003e]\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\u003c\/font\u003e","brand":"Wiley","offers":[{"title":"Brand New","offer_id":52257151287576,"sku":"9780470182710","price":76.19,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0730\/2037\/5320\/files\/9780470182710.jpg?v=1781277656","url":"https:\/\/freshlyprintedbooks.co.uk\/products\/financial-management-and-accounting-fundamentals-for-construction-hardback-9780470182710","provider":"Freshly Printed Books","version":"1.0","type":"link"}