Arrange the events in the proper sequence relating to unplanned accumulation of inventories by a shirt manufacturing firm.

A. Hence, the firm produces 5000 shirts expecting to keep 1000 shirts as inventory at the end of the year
B. The firm starts the financial year with an inventory of 1000 shirts
C. The firm is only able to sell 4000 shirts during the financial year
D. During the financial year it expects to sell 5000 shirts
E. The firm ends the year with 1000 + 1000 = 2000 shirts

Choose the correct answer from the options given below:

B, D, A, C, E

The correct answer is Option (2) → B, D, A, C, E

B. The firm starts the financial year with an inventory of 1000 shirts: This sets the starting point for inventory levels.
D. During the financial year it expects to sell 5000 shirts: The firm forecasts their sales for the year.
A. Hence, the firm produces 5000 shirts expecting to keep 1000 shirts as inventory at the end of the year: Based on the sales forecast and desired ending inventory, the production plan is decided.
C. The firm is only able to sell 4000 shirts during the financial year: This is the unexpected event that leads to unplanned inventory accumulation. Sales fall short of expectations.
E. The firm ends the year with 1000 + 1000 = 2000 shirts: Because sales were lower than expected, the firm is left with more inventory than they had planned for at the beginning of the year (1000 starting inventory + 1000 produced - 4000 sold = 2000 ending inventory).