Arlington Steel Company is a producer of raw steel and steel-related products. On January 3, 2025, Arlington enters into a firm commitment to purchase 10,000 tons of iron ore pellets from a supplier to satisfy spring production demands. The purchase is to be at a fixed price of $63 per ton on April 30, 2025. To protect against the risk of changes in the fair value of the commitment contract, Arlington enters into a futures contract to sell 10,000 tons of iron ore on April 30 for $63 per 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, the price of iron ore fell to $61 per ton, and then to $60 per ton on April 30. Required: 1. Calculate the net cash settlement at April 30, 2025. 2. Prepare the journal entries for the period January 3 to April 30, 2025, to record the firm commitment, necessary adjustments for changes in fair value, and settlement of the futures contract. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the net cash settlement at April 30, 2025. Net cash settlement April 30 < Required 1 Required 2 >