JKL Enterprises is preparing its budget for the next fiscal year. The following information is provided:

Item	Amount ($)
Expected sales	1,000,000
Cost of goods sold	600,000
Operating expenses	200,000
Depreciation expense	50,000
Capital expenditures	100,000

Required: a. Prepare an operating budget for the next fiscal year. b. Prepare a capital budget for the next fiscal year. c. Explain the importance of budgeting in financial planning and control. d. Discuss the potential challenges in preparing and implementing budgets.