The cash flow statement shows the cash inflows and outflows in a business over a specific period of time. It is divided into three sections: operating activities, investing activities, and financing activities. Operating activities include cash inflows and outflows related to the day-to-day operations of the business, such as sales and expenses. Investing activities include cash inflows and outflows related to the acquisition and sale of assets, such as equipment or property. Financing activities include cash inflows and outflows related to the financing of the business, such as borrowing and issuing stock.