Compared to the provision for income taxes in 2007, the company’s cash tax payments were:

A. lower.

B. higher.

C. the same.

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows ($ thousands):

Transcribed Image Text:

Deferred tax assets: Accrued expenses Tax credit and net operating loss carryforwards LIFO and inventory reserves Other Deferred tax assets Valuation allowance Net deferred tax assets Deferred tax liabilities: Depreciation and amortization Compensation and retirement plans Other Deferred tax liabilities Net deferred tax liability 2007 $8,613 2,288 5,286 2,664 18,851 (1,245) $17,606 $(27,338) (3,831) (1,470) (32,639) $(15,033) 2006 $7,927 2,554 4,327 2,109 16,917 (1,360) $15,557 $(29,313) (8,963) (764) (39,040) $(23,483)