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## NOTE 8 Inventories 

Total inventories at the lower of cost and net realizable value on the statement of financial position are comprised of the following: 

<img src='content_image/275905.jpg'>

(1) Headless and gutted 

Expenses recognized in cost of sales for inventories during the year are comprised of the following: 

<img src='content_image/275906.jpg'>

The value of inventory subject to a reserve was $8.8 million (December 29, 2012: $2.4 million). Inventory and reserves have increased due to the American Pride Acquisition (note 4) . 

## NOTE 9 Accounts receivable 

Accounts receivable bear normal commercial credit terms, usually 30 days or less, and are non-interest bearing. The entire accounts receivable balance is pledged as collateral for the Company’s working capital facility. 

<img src='content_image/275907.jpg'>

Accounts receivable have increased due to the American Pride Acquisition (note 4) . 

