The balance in retained earnings at December 31, 2012 was $720,000 and at December 31, 2013 was $582,000. Net income for 2013 was $500,000. A stock dividend was declared and distributed which increased common stock $250,000 and paid-in capital $110,000. A cash dividend was declared and paid.

Calculate the amount of the cash dividend.

a. an outflow from financing activities of $375,000.

b. an outflow from financing activities of $540,000.

c. an outflow from investing activities of $540,000.

d. stock dividends are not shown on a statement of cash flows.