1. How long is the operating cycle of Williamette Valley Vineyards?
Original blog posting (March 14, 2017)

2. Williamette Valley Vineyards
Oregon has the 3rd most wineries in the United States
Williamette Valley Vineyards, Inc. is a publicly held winery in Oregon
Produces and sells a variety of bottled wines, including Pinot Noir, Chardonnay, Pinot Gris, Rose, & Riesling
Bottles of wine are typically available for sale five months to two years after the grape harvest

3. Williamette Valley Vineyards
Steps in winemaking:
Grow/purchase grapes
Harvest the grapes
Weigh & perform quality assessment of the grapes
Crush the grapes
Immediately remove white wine grape skins, otherwise grape skins are included in fermentation
Let ferment for 10 days to a month
Filter out the solids and age the wine

4. Question 1
What is an operating cycle?

5. Question 2
How long do you think Williamette Valley Vineyards’ operating cycle is? Why?

6. Question 3
If a particular vintage of wine will be ready to be sold in 18 months from the date of grape harvest, would Williamette Valley Vineyards be likely to classify that vintage as current assets or long-term assets? Explain.

7. Question 4
Why does it matter whether an asset (or liability) is classified as current or long-term?

8. Question Recap What is an operating cycle?
How long do you think Williamette Valley Vineyards’ operating cycle is? Why?
If a particular vintage of wine will be ready to be sold in 18 months from the date of grape harvest, would Williamette Valley Vineyards be likely to classify that vintage as current assets or long-term assets? Explain.
Why does it matter whether an asset (or liability) is classified as current or long-term?

9. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at Questions or comments? Contact Dr. Wendy Tietz at