The balance in retained earnings at December 31, 2017 was $1440000 and at December 31, 2018 was $1164000. Net income for 2018 was $1000000. A stock dividend was declared and distributed which increased common stock $500000 and paid-in capital $220000. A cash dividend was declared and paid. The stock dividend should be reported on the statement of cash flows (indirect method) as

an outflow from investing activities of $720000.

an outflow from financing activities of $500000.

an outflow from financing activities of $720000.

Stock dividends are not shown on a statement of cash flows.