Question 1 3.4 points Save Answer Willacy Wires Co. uses copper in the production of its electric wires. On January 1, 2021. Willacy enters into a firm commitment to purchase 100 tons of copper from a supplier to satisfy summer production demands. The purchase is to be at a fixed price of 56,000 per ton on July 31, 2021. To protect against the risk of changes in the fair value of the commitment contract, Willacy enters into a futures contract to sell 100 tons of coppeer on July 31 for $6.000/ton (the current price). The contract calls for net cash settlement, and the company must report changes in the fair values of its hedging instruments each quarter. On March 31, 2021 (when willacy issues the first quarter financial statements) the price of copper was 55,300/ton. On the March 31, 2021 balance sheet the firm commitment will appear as: 5600,000 lady 570.000 labdaty The firm commitment will not appear in the balance sheet 570.000 at