Ophelia Ltd

Ophelia Ltd. reported retained earnings at December 31, 2019 of $ 270,000, and at December 31, 2020, $ 218,000. Net income for calendar 2020 was $ 187,500. During 2020, 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.