A Statement of Cash Flows is a financial document that outlines the inflows and outflows of cash over a specific period of time. The purpose of this statement is to provide insight into how a company generates and uses cash to support business operations. The statement breaks down cash flows into three categories: Operating activities, investing activities, and financing activities. Operating activities reflect the cash generated through core business operations. Investing activities focus on the acquisition and disposal of long-term assets as well as investments into non-operating entities. Lastly, financing activities include any activity related to long term debt or ownership interests such as issuing new equity or acquiring debt. By understanding where cash is coming from and going to, companies can develop strategies for making smart decisions about their finances!