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In this tutorial, Mike Werner discusses the preparation of the operating budget for ABC Manufacturing Inc. for the first quarter of 2021. Key elements needed for the budget include the sales forecast, selling price of the product, and cash collections budget, highlighting the importance of understanding how the company plans to collect funds. The focus is on gathering necessary information for creating an accurate budget for the quarter ending March 31, 2021, with forecasted sales in units for November at 280 and December at 310. The session emphasizes the importance of thorough data review to facilitate effective budgeting.