You are the Controller of the East Company. You have been using the FIFO inventory costing method. The company just hired a new Chief Financial Officer, your new boss, who wants to pay the least amount of taxes possible but also wants to show the highest Net Income on the Income Statement.

Requirements:

1. Assuming that costs are increasing, is it possible for a company to pay the least in taxes and show the highest Net Income using FIFO inventory costing?
2. . Why? Or why not?