Red Manufacturing Company Owns 40% of the Outstanding Common Stock

Red Manufacturing Company owns 40% of the outstanding common stock of Blue Supply Company. During 2018, Red received a $50 million cash dividend from Blue. What effect did this dividend have on Red's 2018 statement of cash flows?

A) Cash flow from operating activities increased.
B) Cash flow from investing activities increased.
C) Cash flow from financing activities increased.
D) No effect.