【正确答案】 A

【答案解析】Dividends declared in 2004 are net income less the increase in retained earnings ($ 800000-$ 300000=$ 500000). Dividends declared less the increase in dividends payable is dividends paid ($500000-($300000-$200000)=$400000). This is a cash outflow so it is a negative number. Dividends are always cash flow from financing. Note that accounts payable changes are included in cash flow from operations (CFO).