Interview question

During the technical portion of an interview, I was asked how a PIK note would flow through all the statements. Let me know your opinion on the below answer. Let's assume that it is a $100mm note with 10.0% interest.

Income Statement
The interest from the note drives up your interest expense costs by $10mm
That would create a tax shield and tax would decrease by $4mm, assuming a 40.0% tax rate
Net income would be lowered by $6mm

Cash Flow Statement
Net income would be lowered by $6mm
The $10mm in interest from the PIK note would be added back since it is not paid out in cash
The net change in cash would be an increase of $4mm

Balance Sheet
Cash would be increased by $4mm
Interest payable would increase by $10mm
Retained earnings would decrease by $6mm

I have an upcoming interview with G.X. Clarke for full time for a fixed income sales position. They are a fixed income dealer based out of Jersey City.

Has anyone interviewed with them or know anything about the firm?