Integrative Cases 3-72 (Algo) Financial Modeling (LO 3-1,2,3,4,5) Three entrepreneurs were looking to start a new brewpub near Sacramento, California, called Roseville Brewing Company (RBC). Brewpubs provide two products to customers-food from the restaurant segment and freshly brewed beer from the beer production segment. Both segments are typically in the same building, which allows customers to see the beer-brewing process. After months of research, the owners created a financial model that showed the following projections for the first year of operations. Sales Beer sales Food sales Other Sales Total sales Less cost of sales Gross margin Less marketing and administrative expenses Operating profit $ 787, 880 969,600 262,600 $2,020,000 475, 710 $1,544,290 1,057,600 $ 486,690 In the process of pursuing capital through private investors and financial institutions, RBC was approached with several questions. The following represents a sample of the more common questions asked: