I. Below is the Statement of Financial Position of Federated Products Limited for the threeyear period 2017 to 2019

	2019	2018	2017
	$'000	$'000	$'000
Non-current assets Property, plant and equipment	1300	925	737
Development Expenditure Current assets Inventories	400	290	160
	1,700	1,215	897
	500	360	227
Trade receivables	250	274	324
Investments (highly liquid)	170	143	46
Cash Total assets Equity Share capital-$1 Ordinary shares	40	29	117
	960	806	714
	2,660	2021	1611
	700	500	400
Share premium	450	350	100
Revaluation surplus	200	160	60
Retained Earnings Non-Current liabilities 12% Debentures	456	229	255
	1,806	1,239	815
	150	150	100
Finance Lease Liabilities	140	100	80
Deferred Tax Current Liabilities Trade payables	48	48	45
	338	298	225
	240	274	352
Finance Lease Liabilities	20	17	12
Current Tax	70	56	153
Debenture interest	10	5	0
Bank overdraft Total equity and liabilities	176	132	54
	516	484	571
	2,660	2,021	1,611

Comment on the following aspects of the financial position of the company over the period, using ratios where appropriate:

a) Short term liquidity (5marks)

b) Capital structure or gearing (5marks)

c) Growth in total assets over the period (3marks)

III. Explain what is a constructive obligation and explain how it is used to determine whether or not a provision should recognised in the financial statements.