The balance in retained earnings at December 31, 2003 was $810,000 and at December 31, 2004 was $654,000. Net income for 2004 was $563,000. A stock dividend was declared and distributed which increased common stock $225,000 and paid-in capital $125,000. 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 financing activities of $225,000
b. An outflow from financing activities of $350,000
c. An outflow from investing activities of $350,000
d. Stock dividends are not show on a statement of cash flows