One of the liver's functions is the production of bile, which emulsify lipids in the intestinal contents so they can be effectively digested. is there any reason to think mrs. f's liver is not performing this function?

The liver produces bile, that is, a soapy compound, which emulsifies lipids. The liver generates bile that comprises enzymes, and these enzymes emulsify fat into glycerides and fatty acids.  

The bile juice emulsifies fats in the intestinal contents so that they can be digested efficiently. In case, when the liver does not perform the function properly of secreting bile, then the weight of an individual increase, which indicates that the liver of the person is not generating sufficient bile to monitor the digestion of lipid.