Final answer:
The external user of financial statements would look at the notes to the financial statements for information on how amounts were derived.
Step-by-step explanation:
The external user of financial statements who wants to know how amounts were derived would look at the notes to the financial statements. These notes provide additional information about the accounting policies, methods, and assumptions used to prepare the financial statements. They also disclose any significant events or transactions that may impact the financial statements.
For example, a note may explain how the company calculates depreciation expenses or how it accounts for non-operating income. By reviewing these notes, the external user can gain a better understanding of how the amounts in the financial statements were determined.