The statement of cash flow shows the cash inflows and the cash out flows of a given company for a year. The balance sheet and the income statement are prepared on an accrual basis but the cash flow statement is the only statement that shows the actual cash position of the company.
It’s divided in three different sections : operating activities, investing activities, financing activities.
It’s a really important statement since it shows the cash generated from the every day operations and the cash paid out to generate sales. It also shows how well a company is doing in controlling cash payments that are not necessary (bonuses etc).