Calorie intake??

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Okay so my calorie intake was 1,300 and I changed my goals.
Now it recommends me to eat 1,200 calorie which i believe is outrageous. I don't want
to become nasty skinny I want to be toned mainly have my back and arms to have a toned image.

I'm 18 years old, female, I exercise mostly everyday one day i'll do 1-2 hour session on lifting and the
next day i will do 1 hour cardio. Last time I stepped on the scale i was at 120 (5'3 feet btw) I have some
body fat i think around 20% something but I could careless for the scale and go off by what I see in the mirror.
Should I increase my calorie intake if I want to build muscle and lose inches/burn fat? Or should it be this low?

My HRM got messed up today..sadly. T_T