Final Answer:
Peral, the finance manager of BBCC, submitted a justification for a short-term loan to finance increased sales to the Queensville Interstate Bank.
Step-by-step explanation:
In the given scenario, Peral, the finance manager of Bob Builder Construction Company (BBCC), has submitted a justification for a short-term loan to the Queensville Interstate Bank (QIB) to finance increased sales. This strategic financial move aligns with common business practices where companies secure short-term loans to manage cash flow during periods of increased business activities.
The justification likely involves an analysis of the consolidated income statement and balance sheet of BBCC. Peral would have assessed the current financial health, identifying the need for additional funds to support the increased sales. The income statement provides insights into BBCC's profitability, while the balance sheet indicates the company's assets, liabilities, and equity. Peral's justification would highlight the sound financial position of BBCC and the expected returns from the increased sales, justifying the need for a short-term loan.
Utilizing financial statements for decision-making is a standard practice in financial management. Peral's submission to QIB reflects BBCC's proactive approach to securing financial resources to capitalize on business opportunities, showcasing effective financial management strategies.