Develop the Year 1 financial forecast (income statement, balance sheet and statement of cash flows) for Bennis Co. Revenue is projected at $800,000, with a gross margin of 34%. Operating expenses (including depreciation of $30,000) total 20% of revenue and taxes are estimated at 35% of pre-tax income. Bennis wants to maintain a cash balance of 3% of their cost of goods sold. Accounts receivable are 10% of sales and inventory turnover is forecast at 9 times. Fixed assets of $500,000 will be needed to start the venture. Accounts payable days are forecast to be 30. If Bennis will be all-equity financed, calculate the required initial investment by the entrepreneur.