I have been reading about possible distortion of the statement of cash flows caused by the zero-interest-bearing note.

I have been reading about possible distortion of the statement of cash flows caused by the zero-interest-bearing note. To help gain a better understanding of the effect to the financial statements, could someone further explain how the zero-interest-bearing note could distort the statement of cash flows? I ask because the debt incurred and the interest (discount on notes payable) paid is accounted for with both the interest-bearing and zero-interest-bearing note.