Can someone please explain the solution to scenario 2. Specifically where the New debt for AFN comes From....As well as the interest paid

U.S. Corporation Income Statement Nick Harris Paul Vallejo Year0 yearl Scenario 1 Scenario 2 Net sales cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income taxes Net Income Dividents Addition to retained earnings 1509 750 65 694 1659.9 825 65 769.9 70 73.7355 624 696.1645 236.70 459.47 114.87 344.60 1659.9 825 65 769.9 73.74 696.16 236.70 459.47 114.87 344.60 1659.9 825 65 769.9 47.66 722.24 245.56 476.68 19.17 357.51 21 212 412 103 309 U.S. Corporation Balance Sheets as of Decemeber 31, 2012 and 2013 Year-1 Yearo Scenario 1 Scenario 2 Asset Current Asset Cash Account Receivables Invento 104 455 553 1112 160 176 756.8 610.5 1543.3 176 756.8 610.5 1543.3 176 756.8 610.5 1543.3 688 Total Fixed Asset 1403 Net Fixed Asset 1644 17091644.00 1644.00 1644.00 Total Asset 2756 3112 3187.3 3187.30 3187.30 U.S. Corporation Income Statement Nick Harris Paul Vallejo Year0 yearl Scenario 1 Scenario 2 Net sales cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income taxes Net Income Dividents Addition to retained earnings 1509 750 65 694 1659.9 825 65 769.9 70 73.7355 624 696.1645 236.70 459.47 114.87 344.60 1659.9 825 65 769.9 73.74 696.16 236.70 459.47 114.87 344.60 1659.9 825 65 769.9 47.66 722.24 245.56 476.68 19.17 357.51 21 212 412 103 309 U.S. Corporation Balance Sheets as of Decemeber 31, 2012 and 2013 Year-1 Yearo Scenario 1 Scenario 2 Asset Current Asset Cash Account Receivables Invento 104 455 553 1112 160 176 756.8 610.5 1543.3 176 756.8 610.5 1543.3 176 756.8 610.5 1543.3 688 Total Fixed Asset 1403 Net Fixed Asset 1644 17091644.00 1644.00 1644.00 Total Asset 2756 3112 3187.3 3187.30 3187.30