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Set of pro forma financials

With the help of another tutor, I received help in developing a set of pro forma financials (income statement and balance sheet only) for the next fiscal year-end using the percent-of-sales method. Assuming that the company's sales have increased by 20%. (Please see the attached document)

What I'm not clear on is how or where the underlying assumptions of the analysis and computations are found. Could someone please elaborate and possibly explain that part of this test prep excercise.?


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Underlying assumptions:
1. Balance sheet - The computation is done on the basis of growth of 20% of ...

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This explains the prepration of set of pro forma financials