Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Textbook Question
Chapter 14, Problem 1DQ
What are the five steps for developing a
Expert Solution & Answer
To determine
Identify the five steps to develop the construction company cash flow.
Explanation of Solution
The five steps to develop the construction company cash flow are:
- The construction costs, project revenues, cash receipts and disbursements for every project is combined to get the cash flow for the company.
- The cash disbursement for general overhead is determined by combining overhead cash flow with cash flow from projects to get cash flow from operations.
- Incorporate the other expenses and revenues.
- The minimum cash balance for companies receiving revenue at the month end.
- Perform the sensitive analysis, check what if scenarios and determine the changes in the company’s need with the changes in input parameters.
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Construction Accounting And Financial Management (4th Edition)
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