How do I get pics on a google doc???

I'm new to Google Docs. My co-workers live in different cities and we wanted a way to stay updated about each others accounts, so I created a google doc. We would like to share images of displays within our accounts as well as keeping up with trends we've seen. Is there a way to upload a picture that we've taken to google docs?

I've tried to use the import key but it says that the pic needs to be in xls, xlsx, ods, csv or txt. I'm not sure what these are or how to convert my existing jpgs to this.

Can someone help????

Thanks,
Anja