Ophelia Ltd

Ophelia Ltd.reported retained earnings at December 31, 2016 of $270,000, and at December 31, 2017, $218,000.Net income for calendar 2017 was $187,500.During 2017, a stock dividend was declared and distributed, which increased the common shares account by $116,500.As well, a cash dividend was declared and paid during the year.The stock dividend should be reported on the statement of cash flows as

A) an outflow from operating activities of $116,500.
B) an outflow from financing activities of $116,500.
C) an outflow from investing activities of $116,500.
D) Stock dividends are not shown on a statement of cash flows.