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In this video tutorial, Mike Werner introduces the preparation of an operating budget for ABC Manufacturing Inc. for the first quarter of 2021, specifically covering January through March. To create the budget, key information is necessary, including the sales forecast and selling price of the product. Mike also mentions the need to develop a cash collections budget, which requires knowing how and when the company expects to collect funds. He invites viewers to review the company data, including forecasted sales figures for November and December, which are 280 and 310 units, respectively. The tutorial aims to guide viewers through the budgeting process using this information.