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In this tutorial, Mike Werner discusses the preparation of an operating budget for ABC Manufacturing Inc. for the first quarter of 2021. Key components needed for the budget include the sales forecast, selling price of the product, and a cash collections budget to understand the expected cash inflow timing. Mike invites viewers to explore the necessary information before coming back to compile the budget. The budget covers the period ending March 31, 2021, and includes sales forecasts with specific units for the months of November (280 units) and December (310 units) as part of the overall budgeting process for January through March 2021.
