Refer to the salesforce.com financial statement excerpts given below to answer the questions. On January 31, 2019, the price of salesforce.com stock was $151.97, and there were 770 million shares of common stock outstanding. The price of its stock on January 31, 2018, was $113.91. All questions relate to the fiscal year ended January 31, 2019, unless stated otherwise. salesforce.com, inc. Consolidated Statements of Operations Fiscal Year Ended January 31, (in millions, except per share data) 2019 2018 2017 Income before benefit from (provision for) income taxes* 983 420 179 Benefit from (provision for) income taxes 127 160) 144 Net income $ 1,110 $360 $ 323 Basic net loss per share $ 1.48 $0.50 50.47 Diluted net loss per share $ 1.43 $0.49 $0.46 Shares used in computing basic net loss per share 751 715 688 Shares used in computing diluted net loss per share 775 735 700 *Amounts include stock-based expenses, as follows: Fiscal Year Ended January 31, 2019 2018 2017 Cost of revenues $ 161 $ 130 $ 107 Research and development 307 260 188 Marketing and sales 643 469 389 General and administrative 172 138 136Consolidated Statements of Cash Flows Fiscal Year Ended January 31, (in millions) 2019 2018 2017 Operating activities: Net income $1,110 $ 360 $ 323 Adjustments to reconcile net loss to net cash provided by operating activities Depreciation and amortization 962 753 632 Amortization of debt discount and issuance costs 20 31 31 Amortization costs capitalized to obtain revenue contracts, net 737 592 470 Expenses related to employee stock plans 1,283 997 820 Gains on strategic investments, net (542) (19) (31) Changes in assets and liabilities, net of business combinations: Accounts receivable, net (923) (719) (633) Costs capitalized to obtain revenue contracts, net (981) (1,156) (693) Prepaid expenses and other current assets and other assets (58) 18 (47) Accounts payable 74 (39) 35 Accrued expenses and other liabilities 213 392 69 Unearned revenue 1,503 1,528 1,186 Net cash provided by operating activities 3,398 2,738 2,162Fiscal Year Ended January 31, Stock Options 2019 2018 2017 Volatility 27-28% 28-31.4% 31.4-32.3% Estimated life 3.5 years 3.5 years 3.5 years Risk-free interest rate 2.5-3.0% 1.4-2.3% 0.9-1.6% Weighted-average fair value per share of grants $28.89 $22.71 $19 13Options Outstanding Shares Outstanding Weighted- Aggregate Available Stock Average Intrinsic for Grant Options Exercise Value (in thousands) (in thousands) Price (in millions) Balance as of January 31, 2018 50.313 21.735 $65.96 Increase in shares authorized 2013 Equity Incentive Plan 40.000 0.00 Assumed equity plans 8.357 0.00 Options granted under all plans (13.846) 13.846 69.04 Restricted stock activity (19.937) 0.00 Performance-based restricted stock units (1.911) Stock grants to board and advisory board members (146) 0.00 Exercised 0 (8,495) 44.40 Plan shares expired (163) 0 0.00 Canceled 1.140 (1,140) 77.59 Balance as of January 31, 2019 63.807 25.946 $74.15 $2,019 Vested or expected to vest 24.643 $72.65 $ 1.941 Exercisable as of January 31, 2019 12.770 $55.58 $ 1.231Options Outstanding Options Exercisable Weighted-Average Weighted- Remaining Weighted- Average Range of Exercise Number Contractual Life Average Number of Exercise Prices Outstanding (Years) Exercise Price Shares Price $0.03 to $21.54 3.664 6.3 $ 11.91 2.273 $21.81 $22.12 to $59.34 6,119 2.9 53.60 5,805 35.06 $59.37 to $75.01 995 5.2 68.37 442 38.45 $75.57 3,920 4.8 75.57 1,627 43.25 $76.48 to $82.08 3.634 3.9 80.85 2.391 52.30 $82.55 to $1 13.00 954 5.6 98.03 232 54.28 $1 18.04 to 155.52 6,660 6,2 120.23 0 0.00 25,946 4.9 $ 74.15 12,770 $55.58Fiscal Year Ended January 31, 2019 2018 2017 Numerator: Net income $1, 110 $360 $323 Denominator: Weighted average shares outstanding for basic eamings per share 751 715 688 Effect of dilutive securities: Convertible senior notes which matured in April 2018 Employee stock awards 21 14 Warrants 2 Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share 775 735 700 The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of the following potential outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted earnings/loss per share because the effect would have been anti-dilutive (in millions): Fiscal Year Ended January 31, 2019 2018 2017 Employee stock awards 4 11 Warrants 17