On January 1, 20X1, a company had a dividends payable balance of $30,000. On December 31, 20X1, the credit balance of the dividends payable account was $22,000. Which of the following is true of the treatment of dividends payable in the statement of cash flows?

a. The value of dividends payable has increased by $8,000, indicating an inflow impacting the financing section of the cash flow statement.

b. The value of dividends payable has reduced by $8,000, indicating an inflow impacting the financing section of the cash flow statement.

c. The value of dividends payable has reduced by $8,000, indicating an inflow impacting the operating section of the cash flow statement.

d. The value of dividends payable has reduced by $8,000, indicating an outflow impacting the financing section of the cash flow statement.