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How can I balance this out for my pro-forma? My instructor stated that I could start paying back debt but have to reduce interest expense or I could buy back shares of stock and put it in treasury. How could I do this on the above balance sheet? Please show example/work. Thank you.

How can I balance this out for my pro-forma? My instructor stated that I could start paying back debt but have to

reduce interest expense or I could buy back shares of stock and put it in treasury. How could I do this on the above balance sheet? Please show example/work. Thank you. 

 
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