A cash flow statement is a financial document that tracks the inflow and outflow of cash over a period of time. This statement is one of the key documents used by businesses to track their overall cash position. It is important to understand both the inflows and outflows of cash associated with a business as it can have a huge impact on its ability to be successful. Inflows refer to cash received from sales, investments, loans, etc., while outflows refer to money spent on operating expenses, taxes, capital expenditures, debt payments, dividends, and other activities. By understanding how money is moving in and out of an organization, businesses can more effectively manage its cash position and make wise decisions about how to use it.