CMA Part 2 case studies
CMA Part 2 · Put your knowledge to work in context.
The CMA (Certified Management Accountant) is a management accounting credential awarded by the Institute of Management Accountants (IMA), which describes it as "the globally recognized standard in management accounting - and a proven path to bigger roles and better opportunities." Part 2 is the second of the exam's two sections and concentrates on the finance professional's role as an analyst and decision partner rather than a preparer of records. Its subject matter spans financial statement analysis, corporate finance, decision analysis, risk management, investment decisions, and professional ethics - the toolkit a management accountant uses to interpret performance, fund the business, evaluate projects and product decisions, and act with integrity under pressure. The CMA Part 2 case studies are 5 cases and about 4,406 words.
1Corona Components: Is the Cash Gap Really Just Growth?
Corona Components reports FY2024 revenue of 600 million, up 20% from 500 million, and net income of 42 million versus 30 million. Operating cash flow fell to 18 million from 55 million.
920 words, about 5 min2Halcyon Foods: The 'Debt Is Cheaper' Buyback
Halcyon Foods has market value of equity of 800 million and debt of 200 million (6% coupon, eight years remaining). Equity beta is 1.20, the risk-free rate is 4.0%, and the market risk premium is 6.0%.
775 words, about 4 min3Northline Plastics: Idle Capacity and a Discounted Order
Northline Plastics runs one injection-molding line with 40,000 machine hours of practical capacity per year; current demand for its standard product, Part A, uses 28,000 hours. Part A sells for 30, has variable cost of 16 (including the 5% sales commission), and requires 1.5 machine hours.
771 words, about 4 min4Vantage Grid: A Thin-Margin Project With a Real Downside
Vantage Grid is evaluating a six-year project: 10 million of equipment depreciated straight-line to zero, plus 1.0 million of working capital required immediately and fully recovered at the end. Base case is 200,000 units per year at 49, variable cost 30, fixed cash costs $900,000 per year.
855 words, about 4 min5Delcrest Medical Devices: The Warranty Reserve and the Covenant
Priya Raman, CMA, is controller of Delcrest Medical Devices. Two weeks before year-end close, the CFO tells her to cut the product-warranty reserve from 4.2 million to 1.5 million, saying the actuaries' model is "too conservative and the auditors won't push back." The reserve covers a field-corrective-action risk disclosed in last year's 10-K.
1,085 words, about 5 min