While studying with a classmate, you are discussing a question about which of the financial statements you would look to in order to determine the amount of dividends that a company declared during the year. Your classmate states:
“The amount of dividends that have been declared can be seen on the statement of income. This statement tells users how much profit the company makes after expenses and dividends declared have been deducted from the revenues earned during the period.”

Required
Evaluate your classmate’s response. Identify the elements that are correct and incorrect. For any elements that are incorrect, explain why.