content_image/1049706.jpg content_image/1049707.jpg content_image/1049708.jpg
## Contract Balances 

The Company often receives cash payments from customers in advance of the Company’s performance for limited production run orders resulting in contract liabilities. These contract liabilities are classified in accrued expenses in the Consolidated Balance Sheets based on the timing of when the Company expects to recognize revenue, which is typically less than a year. The net decrease or increase in the contract liabilities is primarily driven by order activity for limited runs requiring deposits offset by the recognition of revenue and application of deposit on the receivables ledger for such activity during the period. The activity in the advanced deposits for the twelve months ended December 29, 2018, December 30, 2017, and December 31, 2016 is as follows: 

<img src='content_image/1049706.jpg'>

## NOTE 4 - RECEIVABLES, NET 

Receivables are summarized as follows: 

<img src='content_image/1049707.jpg'>

Bad debt expense was $163 in 2018, $70 in 2017, and $38 in 2016. 

## NOTE 5 - INVENTORIES, NET 

Inventories are summarized as follows: 

<img src='content_image/1049708.jpg'>

Reduction of inventory quantities in 2018 resulted in liquidations of LIFO inventories carried at prevailing costs established in prior years and increased cost of sales by $168 in 2018. 

