REDTECH DYNAMICS SOLUTIONS CORP.

Required Sales Based on Target Ending Cash Calculator

Determine the additional sales and collections required to pay the company’s projected cash obligations and retain the desired cash balance at the end of the fiscal year.

Input Parameters

Fields marked * are required. Blank amounts count as zero.

Primary Question

How much cash do you want to retain in the bank at the end of the fiscal year?

Enter the amount management wants to retain after paying all projected operating, financing, investing, and tax related cash obligations for the fiscal year.

2 Calculation Period
Months Completed
8.53
Months Remaining
3.47
Days Remaining in the Current Month
14

The months completed, the months remaining and the days remaining in the current month are worked out from the computation cutoff date and the fiscal year ending date.

3 Cash Balance Information

Enter the company’s beginning, current, and desired ending cash balances.

Desired Ending Cash Balance

Answer the primary question above

The amount management wants to retain in the bank at the end of the fiscal year.
The cash in bank at the beginning of the fiscal year.
The actual cash in bank as of the computation cutoff date.
The minimum amount that must remain available for normal business operations.

4 Actual Sales and Collections to Date

Enter the actual sales and collections recorded from the beginning of the fiscal year up to the computation cutoff date.

Actual Net Sales
PHP 0.00
Actual Collection Rate
—
Kept out of the actual collection rate, and counted with the other cash inflows.
The part of the outstanding current and prior year receivables expected to be collected before the end of the fiscal year.

Actual Net Sales = Actual Gross Sales less Sales Returns, Sales Discounts, and Sales Allowances. Actual Collection Rate = Actual Collections from Current Year Sales divided by Actual Net Sales, multiplied by 100. Collections from prior year receivables are not included in the current year collection rate.

5 Remaining Sales and Collection Assumptions

Enter the percentage of future sales expected to be collected before the end of the fiscal year.

Sales do not automatically result in cash. The expected collection rate determines how much of the remaining sales will be converted into cash before year end.

For the primary computation, all sales and cost percentages must be entered on a VAT exclusive basis.

6 Cost of Sales and Variable Costs

Enter the costs that increase or decrease based on the level of sales.

Direct cost of generating sales, expressed as a percentage of net sales.
Percentage of cost of sales expected to be paid in cash before year end.
Operating expenses that change based on sales volume.
Commission expense calculated as a percentage of sales.
Other cash payments that change directly with sales.
Sales Related Cash Outflow Rate
0.00%
Net Cash Contribution Rate
—

The supplier payment rate identifies the portion of cost of sales expected to be paid during the fiscal year. The unpaid portion will remain as a payable and will not reduce year end cash during the selected period.

7 Fixed Operating Expenses

PHP 0.00

Enter the full year operating expenses that do not ordinarily change directly with sales.

Total Fixed Operating Expenses PHP 0.00

Fixed operating expenses are used in determining operating income. Depreciation and amortization are included in operating income but excluded from cash outflow because they are noncash expenses.

8 Actual Cash Outflow to Date

PHP 0.00

Enter only payments that have already reduced the company’s cash or bank balance.

Actual Cash Outflow PHP 0.00

Do not include unpaid expenses, pending payment requests, purchase orders, or accrued obligations under actual cash outflow. These must be entered under committed or projected cash outflows.

9 Committed Cash Outflows

PHP 0.00

Enter approved or contractual obligations that remain unpaid as of the computation cutoff date.

Total Committed Cash Outflow PHP 0.00

10 Projected Remaining Cash Outflows

PHP 0.00

Enter the cash payments expected for the remainder of the fiscal year.

Total Projected Remaining Cash Outflow PHP 0.00
Total Cash Outflow Before Income Tax PHP 0.00 Actual Cash Outflow plus Committed Cash Outflow plus Projected Remaining Cash Outflow

11 Other Cash Inflows

PHP 0.00

Enter expected cash receipts that do not arise from current year sales.

Split each receipt between what the company has already received and what it still expects to receive before year end. Receipts already received are part of the current cash balance.

Receipt Received to Date Expected for the Rest of the Year
Collections from Prior Year Receivables PHP 0.00 Entered in section 4. Future collections are part of Expected Collections from Existing Receivables.
Loan Proceeds
Shareholder Capital Infusion
Proceeds from Sale of Assets
Interest Income Collected
Dividend Income Collected
Tax Refunds Received
Other Nonoperating Cash Receipts
Totals PHP 0.00 PHP 0.00
Total Other Cash Inflows PHP 0.00

12 Operating Income and Income Tax

The calculator estimates income tax using operating income as the assumed taxable income.

Standard rate recorded by REDTECH for this fiscal year: 25.00%, effective July 1, 2020. If you use a different rate, enter your name so the computation shows who changed it.

Operating Income = Full Year Net Sales less Cost of Sales, Variable Operating Expenses, Sales Commissions, and Fixed Operating Expenses. When operating income is positive, Estimated Income Tax = Operating Income multiplied by Income Tax Rate; when it is zero or negative, no income tax is estimated. The calculator never computes a negative income tax benefit.

Tax Disclaimer: For purposes of this calculator, operating income is assumed to be equal to taxable income, and the default income tax rate is 25%. Actual taxable income and income tax payable may differ because of tax adjustments, nondeductible expenses, exempt income, tax incentives, minimum corporate income tax, tax credits, prior period adjustments, and other requirements under applicable tax laws. The tax rate is editable, and the resulting amount is for financial planning purposes only.

Have the cash costs related to future sales already been included in the projected cash outflows?

If the cash costs of future sales are already in the projected remaining cash outflows, they are not added again.

Reset

The figures you enter are used only to prepare this computation and the files you download. REDTECH does not keep a record of them. Save Draft keeps a copy in this browser on this device only.

General Disclaimer: The results are financial estimates based on the sales, costs, collection rates, payment assumptions, tax rate, and other information entered by the user. Actual sales, expenses, taxable income, tax payments, collections, and cash balances may differ. This calculator is intended for financial planning and management purposes and does not replace the company’s accounting records, cash flow forecast, tax computation, or professional judgment.

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