The balance in retained earnings at December 31, 2020 was $1,440,000 and at December 31, 2021 was $1,164,000. Net income for 2021 was $1,000,000. A stock dividend was declared and distributed which increased common stock $500,000 and paid-in capital $220,000. A cash dividend was declared and paid. The stock dividend should be reported on the statement of cash flows (indirect method) as A) an outflow from investing activities of $720,000. B) an outflow from financing activities of $720,000. C) an outflow from financing activities of $500,000. D) Stock dividends are not shown on a statement of cash flows.