Generate three pro forma financial statements—Income Statement, Balance

Sheet, and Cash Flow Statement—for a hypothetical startup software

development firm specializing in custom web and mobile app development
for small-to-medium businesses. The firm operates with one full-time
software developer (the founder) in Year 1 (2026), hires one additional
developer in Year 2 (2027), and maintains two developers in Year 3 (2028),
all working remotely with no office space. The financial projections cover
three years (2026–2028) and are generated for each of the following cities:
New York City, NY; Miami, FL; Austin, TX; Atlanta, GA; Madrid, Spain; Denver,
CO; Raleigh-Durham, NC; Santiago, Chile. Use the most current and reliable
2025/2026 data for city-specific inputs (e.g., software developer salaries,
business tax rates, loan interest rates, internet costs, insurance costs) from
sources like Glassdoor, Built In, Numbeo, or NerdWallet. All financial figures
must be presented in USD, with conversions from local currencies (e.g., EUR
for Madrid, CLP for Santiago) using 2026 exchange rates (e.g., 1 EUR ≈ 1.05
USD, 1 CLP ≈ 0.001 USD). Each document must be generated in LaTeX
(contentType: text/latex) using PDFLaTeX, with a professional, tabular format
for financial statements, including only packages from texlive-full and
texlive-fonts-extra (e.g., booktabs, array, geometry, parskip, times,
pdflscape). Use the noto font for consistency. Name each document with the
city prefixed, e.g., "Austin-3-year-pro-forma-Income-Statement.tex", "Austin-
3-year-pro-forma-Balance-Sheet.tex", "Austin-3-year-pro-forma-Cash-Flow-
Statement.tex". Wrap each document in a single <xaiArtifact> tag with a
unique UUID for artifact_id and the appropriate title. Ensure calculations are
accurate, consistent across statements, and reflect industry benchmarks
(e.g., 70–90% gross margin for software startups).

Role: You are Grok 3, an advanced AI financial analyst with expertise in

creating pro forma financial statements for startups. Your role is to act as a
financial consultant, producing precise, data-driven projections based on
user inputs and industry benchmarks. You will incorporate local economic
data for each specified city (e.g., market demand, salary levels, tax policies)
and ensure calculations are accurate and consistent across all statements.

Assumptions:

 Start Year: 2026

 Starting Cash on Hand: $50,000

 Loan: $100,000, 5-year term, equal annual principal payments
($20,000/year) plus city-specific interest rates (source 2025/2026 data,
e.g., U.S. ~6–8%, Spain ~3–5%, Chile ~5–7%).

 Investor Funding: $0

 Revenue:

o Projects per year: 2 in Year 1 (2026), 5 in Year 2 (2027), 7 in Year

3 (2028)

o Average revenue per project (city-specific):

 New York City: $60,000 (Year 1: $120,000; Year 2:

$300,000; Year 3: $420,000)

 Miami: $45,000 (Year 1: $90,000; Year 2: $225,000; Year 3:

$315,000)

 Austin: $50,000 (Year 1: $100,000; Year 2: $250,000; Year

3: $350,000)

 Atlanta: $48,000 (Year 1: $96,000; Year 2: $240,000; Year

3: $336,000)

 Madrid: $35,000 (Year 1: $70,000; Year 2: $175,000; Year

3: $245,000)

 Denver: $50,000 (Year 1: $100,000; Year 2: $250,000; Year

3: $350,000)

 Raleigh-Durham: $47,000 (Year 1: $94,000; Year 2:

$235,000; Year 3: $329,000)

 Santiago: $30,000 (Year 1: $60,000; Year 2: $150,000; Year

3: $210,000)

 Employees:

o Year 1: 1 developer (founder) at the average 2025/2026 market

salary for each city (e.g., New York City ~$184,973, Austin
~$103,573, Atlanta ~$98,962, Miami ~$90,862, Denver
~$105,000, Raleigh-Durham ~$100,000, Madrid ~$36,323,
Santiago ~$30,000).

o Year 2: Hire 1 additional developer (total 2) at the same city-

specific salary.
 o Year 3: Maintain 2 developers at the same city-specific salary.

o No annual raises unless specified.

 Freelance Support:

o Year 1: 25% of project revenue (e.g., NYC: $30,000; Miami:

$22,500; Austin: $25,000; etc.)

o Year 2: 12.5% of project revenue (e.g., NYC: $37,500; Miami:

$28,125; Austin: $31,250; etc.)

o Year 3: 0% of project revenue ($0)

 Expenses:

o Marketing: $3,000 total over 3 years ($1,000/year)

o Business Development: $3,000/year

o Cloud Services: $0

o Software Subscriptions: $450/year per developer, including:

 Microsoft 365 Business Standard (~$150/year)

 JetBrains IntelliJ IDEA (~$200/year)

 GitHub Copilot (~$100/year)

 Total: Year 1: $450; Year 2: $900; Year 3: $900

o Hardware (one-time per developer in hiring year):

 High-quality laptop (~$1,500), two monitors (~$600), total

$2,100 per developer

 Year 1: $2,100 (1 developer)

 Year 2: $2,100 (1 new developer)

 Year 3: $0 (no new hires)

 Total hardware cost: $4,200 over 3 years

o Internet: Constant at $600–$1,200/year, city-specific (e.g., U.S.

~$600–$1,000, Madrid ~$500, Santiago ~$400)

o Insurance: $500–$1,000/year, city-specific (e.g., U.S. ~$600–

$1,000, Madrid ~$500, Santiago ~$400)
 o Taxes and Licenses: City-specific business taxes and
registration fees (e.g., NYC ~8.85%, Atlanta ~8.9%, Austin
~8.25% sales tax, Madrid ~25%, Santiago ~27%). Include local
permits (~$100–$500/year, city-specific).

o Accounting/Legal Fees: $500–$1,000/year, city-specific (e.g.,

U.S. ~$800–$1,000, Madrid ~$600, Santiago ~$500)

o Miscellaneous: $315/year (domain registration ~$15, website

hosting ~$100, office supplies ~$200)

 Depreciation: Straight-line over 3 years per hardware purchase

($2,100 ÷ 3 = $700/year per developer)

o Year 1: $700 (1 developer)

o Year 2: $1,400 (2 developers)

o Year 3: $1,400 (2 developers)

 Payment Terms: 50% of revenue in accounts receivable (60 days),

freelance fees in accounts payable (30 days)

 Tax Deductions: Apply U.S. deductions for expenses (e.g., salaries,

marketing, insurance, interest, depreciation). For Madrid and Santiago,
apply local tax rules (e.g., Spain: 25% corporate tax, Chile: 27% first-
category tax).

Document Requirements:

 Structure:

o Top: Include a bulleted list (using LaTeX itemize environment)

summarizing all assumptions (e.g., revenue, salaries, expenses,
loan terms, tax rates) for the specific city.

o Middle: Present the financial statement (Income Statement,

Balance Sheet, or Cash Flow Statement) in a LaTeX table using
booktabs for clarity.

o Bottom: Include an analysis section with:

 Profitability trends (e.g., shrinking losses, net income

growth).

 Cash flow sustainability (e.g., risk of cash shortfall).

  Break-even analysis (fixed costs ÷ gross margin %; state
when break-even occurs or if it’s beyond 3 years, estimate
when).

 Risks (e.g., high salaries, competition) and mitigation

strategies (e.g., faster collections, cost reductions).

 City-specific recommendations (e.g., leverage Austin’s

Capital Factory, target Madrid’s tech hubs).

 Income Statement:

o Include revenue (city-specific projects × project revenue), cost of

goods sold (developer salaries + freelance support), gross profit,
operating expenses (marketing, business development, software
subscriptions, internet, insurance, taxes/licenses,
accounting/legal, miscellaneous), depreciation, interest expense,
and net income for each year.

 Balance Sheet:

o List assets (cash, accounts receivable, equipment net of

depreciation), liabilities (loan balance, accounts payable), and
equity (initial cash + cumulative net income).

o Ensure assets = liabilities + equity.

 Cash Flow Statement:

o Include cash flows from operating activities (net income adjusted

for depreciation, changes in receivables/payables), investing
activities (hardware purchases in hiring years), and financing
activities (loan proceeds in Year 1, repayments, interest
payments).

o Show ending cash balance each year.

 Formatting:

o Use LaTeX packages: booktabs, array, geometry, parskip, times,

pdflscape, noto font.

o For assumptions, use itemize environment to present a bulleted

list instead of a table.

o Format dollar amounts (e.g., $90,000), show negative values

with a minus sign (e.g., -$95,475).
 o Include a title, assumptions list, and detailed
analysis/notes/recommendations in each document.

Output: Generate 24 LaTeX documents (3 statements × 8 cities), each in a

separate <xaiArtifact> tag with a unique UUID for artifact_id. Ensure
consistency across statements (e.g., net income from Income Statement
flows to Balance Sheet and Cash Flow Statement). Verify LaTeX code
compiles without errors using PDFLaTeX. Highlight cash shortfalls and
suggest mitigation strategies (e.g., faster collections, cost reductions).
Provide a brief guide for users to modify assumptions (e.g., adjust project
counts, salaries, or expenses) and re-run the prompt.

City-Specific Data:

 Source 2025/2026 data for:

o Developer salaries (e.g., Glassdoor, Built In)

o Business tax rates (e.g., NYC ~8.85%, Atlanta ~8.9%, Austin

~8.25% sales tax, Madrid ~25%, Santiago ~27%)

o Loan interest rates (e.g., U.S. ~6–8%, Spain ~3–5%, Chile ~5–
7%)

o Internet costs (e.g., U.S. ~$600–$1,000, Madrid ~$500, Santiago

~$400)

o Insurance costs (e.g., U.S. ~$600–$1,000, Madrid ~$500,

Santiago ~$400)

o Accounting/legal fees (e.g., U.S. ~$800–$1,000, Madrid ~$600,

Santiago ~$500)

 If data is unavailable, use reasonable estimates based on similar cities

and note assumptions clearly.

Example File Names:

 NewYorkCity-3-year-pro-forma-Income-Statement.tex

 NewYorkCity-3-year-pro-forma-Balance-Sheet.tex

 NewYorkCity-3-year-pro-forma-Cash-Flow-Statement.tex

 (Repeat for each city)

Additional Instructions:
 Include a brief guide in each document for compiling LaTeX (e.g., use
Overleaf) and converting to Word if needed.

 Ensure all calculations across all 3 documents are correct and accurate
as a expert in financial accounting.

 Ensure all calculations are consistent and reflect city-specific economic

factors (e.g., higher salaries in NYC, lower costs in Santiago).

 Highlight break-even timing (within or beyond 3 years) and provide an

estimated date if beyond 3 years based on revenue and cost trends.