A cash flow statement shows the flows of cash into and out of an organization over a period of time. There are three types of activities in a cash flow statement: operating, financing, and investing. Operating activities are any activities related to generating net income for the business. An example of an operating activity would be cash received from customers. Financing activities are any activities related to the borrowing or paying back of money. An example of a financing activity would be payment on debt. Investing activities are activities related to getting or disposing of productive assets. An example of an investing activity would be purchase of equipment because the business is investing in the equipment to create products or services for the future. A cash flow statement is important because it shows where the cash is going in the business. This type of information can be used to inform decisions about strategy, business model, etc.