REDTECH DYNAMICS SOLUTIONS CORP.

Required Sales Target Calculator

For a company with no actual sales or expenses yet. Every amount entered is an estimate for the fiscal year selected, and the calculator works out the sales that plan requires.

Actual Mode The fiscal year is under way. Work from the sales, collections and payments already recorded, and find the sales still needed. Open this mode Forecasting Mode No actual sales or expenses yet. Every amount is an estimate for the period ahead, and the calculator works out the sales the plan requires.

Forecast Assumptions

Fields marked * are required. Blank amounts count as zero. Every figure is an estimate for the period ahead.

Primary Question

How much cash does the company want to have at the end of the fiscal year?

The amount the company wants to retain at the end of the forecast period.

A Forecast Period

The period the forecast covers, and the financial year it belongs to.

Months Covered 12.00

B Cash Target

The cash expected at the start, the cash the company wants to hold at the end, and any reserve that must not be used.

Cash expected to be available at the start of the period.
Optional. Cash that must not be used, held on top of the desired balance.
Target Ending Cash Balance PHP 0.00
Required Net Cash Increase PHP 0.00

C Sales and Collection Assumptions

The collection rate matters because recognized sales may not be fully collected within the same fiscal year.

The share of forecast sales expected to be collected within the period.
Cash receipts that are not part of regular sales.

Nonoperating cash inflows — loans, capital contributions, asset sales — are entered in section F, so each one can be named.

Sales Subject to VAT
Sales Presentation
Editable. 12% applies to most VAT registered sales in the Philippines.

VAT collected from customers is remitted to the Bureau of Internal Revenue, so it is treated as passing through the company: the computation runs on VAT-exclusive amounts, and the required sales target is shown both ways.

D Cost of Sales

Enter the direct cost of sales as a percentage of sales, as a fixed amount, or as both.

Estimated direct cost as a percentage of sales.
Estimated direct costs that do not move with sales.
The share expected to be paid within the period.
Depreciation or other costs that require no cash payment.
Cash Paid Out on Each Unit of Sales 0.00%
Net Cash Contribution Rate —

E Forecast Operating Expenses

Add a line for each operating expense. A variable line is worked out as a percentage of sales; a fixed line is the amount entered. Only the cash share of a line, at its payment rate, is treated as cash leaving the company.

No cash paid
Total Fixed Operating Expenses PHP 0.00
Variable Operating Expenses 0.00% of sales

F Nonoperating and Other Cash Items

Cash that moves without passing through operating profit. Outflows raise the sales required; inflows reduce it.

Cash Outflows

Total Nonoperating Cash Outflows PHP 0.00

Cash Inflows

Total Nonoperating Cash Inflows PHP 0.00
Net Nonoperating Cash Requirement PHP 0.00

G Financing Costs

Financing costs are presented separately from operating expenses, and are not deducted in arriving at operating income.

Total Financing Costs PHP 0.00

H Income Tax

Income tax is estimated on forecast operating income, which is treated as taxable income.

The share of the estimated tax expected to be paid within the period.

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

Tax basis: Operating Income. For purposes of this calculator, operating income is treated as taxable income. Where forecast operating income is zero or negative, no income tax is estimated. Financing costs are presented separately and are not deducted in arriving at operating income.

The estimated income tax is computed using the selected tax rate applied to forecast operating income, which is assumed to be equivalent to taxable income. The calculation does not consider tax adjustments, exemptions, incentives, minimum corporate income tax, net operating loss carryover, timing differences, withholding tax credits, or other matters affecting the company’s actual tax liability. The result is for financial forecasting purposes only.

I Scenario Adjustments

Three cases are worked out alongside the forecast when you generate the financial analysis. Each adjustment is a percentage change to the assumptions above: a collection rate of 90% adjusted by -10% becomes 81%, and expenses adjusted by +10% are a tenth higher on every line.

Base Case Uses the amounts entered by the user.
Conservative Case Lower collections and higher costs.
Optimistic Case Higher collections and controlled costs.
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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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