(7) Cash and Cash Equivalents and Advertising Accounting Policies

As of December 31, 2017, the Company changed its policy for cash and cash equivalents to include all credit card, debit card and electronic benefits transfer transactions that process in less than seven days in the amount of $31.4 million and $26.6 million as of March 31, 2018 and December 30, 2017, respectively. Management deems the classification of the amounts due from third-party financial institutions to be more appropriately reported in cash and cash equivalents due to certainty and timely settlement in less than seven days. The amounts have been reclassified from accounts receivable to cash and cash equivalents as of December 30, 2017 in the amount of $26.6 million to conform to the presentation of the Consolidated Balance Sheets as of March 31, 2018.

As of December 31, 2017, the Company changed its policy for advertising costs to expense advertising costs as incurred, net of vendor paid cooperative advertising credits, in Cost of sales in the amount of $1.9 million and $760 thousand for the thirteen weeks ended March 31, 2018 and April 1, 2017, respectively. Management deems the policy change to record net advertising costs in Cost of sales instead of Operating, general and administrative expenses better represents Cost of sales inclusive of direct product costs (net of discounts and allowances), distribution center and transportation costs, manufacturing facility operations and advertising costs that are primarily funded by vendor cooperative advertising credits and occur in the same period the product is sold. Advertising costs net of vendor cooperative advertising credits have been reclassified to Cost of sales out of Operating, General and Administrative costs for the thirteen weeks ended and April 1, 2017 in the amount of $760 thousand to conform to the presentation of the Consolidated Statement of income for the thirteen weeks ended March 31, 2018.

(7) Cash and Cash Equivalents and Advertising Accounting Policies (continued)

The tables below summarize the effect of the reclassifications of previously reported Consolidated Financial Statements for the fiscal year ended December 30, 2017 and the thirteen weeks ended April 1, 2017.


	As of December 30, 2017
	As Previously
Consolidated Balance Sheets (dollars in thousands)	Reported		Reclassifications		As Adjusted
Cash and Cash Equivalent	$	21,305	$	26,612	$	47,917
Accounts Receivable, net		82,877		(26,612)		56,265


	13 Weeks Ended
	April 1, 2017
Consolidated Statements of Income	As Previously
(dollars in thousands)	Reported		Reclassifications		As Adjusted
Cost of sales, including advertising, warehousing and distribution expenses	$	622,433	$	760	$	623,193
Gross profit on sales		229,796		(760)		229,036
Operating, general and administrative expenses		209,546		(760)		208,786


	13 Weeks Ended
	April 1, 2017
Consolidated Statements of Cash Flows	As Previously
(dollars in thousands)	Reported		Reclassifications		As Adjusted
Accounts receivable and prepaid expenses	$	17,539	$	(6,827)	$	10,712
Net cash provided by operating activities		14,632		(6,827)		7,805
Net increase (decreases) in cash and cash equivalents		(2,358)		(6,827)		(9,185)
Cash and cash equivalents at beginning of year		14,653		32,165		46,818
Cash and cash equivalents at end of period	$	12,295	$	25,338	$	37,633