Mineral Waters has used the FIFO cost flow assumption since it was first organized in 20X4. Results have been as follows: 20X4 $26,250 20X5 $45,000 20X6 $48,750 20X7 $67,500 82,250 142,000 164,000 173,000 Reported net income - FIFO Reported ending inventories - FIFO Reported ending Inventories - Average cost 78,500 101,650 117,500 135,500 Required: 1. Restate net income assuming use of the average cost method since the company's inception. 2. What inventory cost flow policy would you expect this company to adopt if it was trying to: a. Minimize income tax payments. b. Report maximum inventory values on the balance sheet