2 credits
Fall 2025 Lecture Upper Division
An introduction to methods for recognizing revenue for long-term construction contracts and each method's impact on financial statements. Includes introduction to analysis of financial statements and their use in developing company budgets, projecting cash needs, pricing construction projects, and forecasting the impact of business decisions on construction company profit.
Learning Outcomes1Identify and explain the use of various revenue recognition methods available to the construction contractor.
2Identify the unique accounts required for percentage of completion revenue recognition, describe what the account represents, and indicate on which statement the account is found.
3Interpret the outcomes of line-item analysis, vertical analysis, horizontal analysis, and cost-volume-profit analysis utilizing construction company financial statement data.
4Perform a profit center analysis of an income statement.
5Prepare an annual budget for a construction company given source documents.
6Analyze the impact of various decisions on company profits by applying the cost-volume-profit financial analysis technique.
7Select the appropriate overhead and profit allocation technique given example company cost structures and compute minimum company overhead and profit mark-up rates.
8Prepare a monthly company budget given the annual budget and other appropriate information.
9Compare the monthly budget prepared to actual data.
10Compare and contrast profit and cash flow for the construction company.
11Prepare a cash flow projection by applying the company monthly budget.
Restrictions
Attachments
made by Purdue students.