Yes, it can be done. First add all your text. Then, just as with a regular word document, place the cursor where you want the image to be placed. Then, add the image - you can readjust the size of it. Finally, simply click on the image itself, and select the alignment you want (left, right). Your image should now be wrapped in text.

Confused? Did you know there's a FREE addon that makes this easier? It's called 'Content Around Image':

http://www.concrete5.org/marketplace/addons/content-around-image/...

Hope this helps!