The document discusses the statement of cash flows (SCF), which summarizes a company's cash inflows and outflows over a period of time. It explains that the SCF has three sections - operating, investing, and financing activities. The operating section covers cash from core business activities. The investing section includes cash from purchases/sales of long-term assets. The financing section covers cash from raising/repaying capital from shareholders and lenders. Examples of cash flow line items are provided for each section. The document also introduces how to prepare the SCF using the direct method.