Cash Flow Treatment for Fixed Income

Hi Guys,

I’m struggling on determining the right cash flow treatment for fixed income bonds. As a non-investing corporation, would buying a bond be treated as an investment? Since bonds are usually not bought at par, would the premium over par portion of the cost be treated as an operating cash flow? Lastly, wouldn’t both interest income and principal payment be treated as investment cash flows for a non-investing corporation?

Thanks! Blue