Organizing files into folders will require moving files from one folder to another. To do this you can right-click on any file, select Cut from the menu, move to the folder you want the file moved to, and right-click > Paste the file.

Another option is to Drag and Drop the file as we discussed earlier. By dragging a file or folder to another location on your computer it will be moved (not copied, unless the files are on a CD or DVD). When dragging a folder which has items inside of it, the contents of the folder will be copied as well. You can also drag a combination of files or folders into folders but obviously a folder or file cannot be dragged into a file.