The modern business environment requires the continuous development and implementation of managerial decisions that will enable further improvement of business in the target market. Managers are expected to identify problems and choose the optimal solution. In order to achieve the above, managers require a quality information framework. Annual financial statements provide reporting information about the financial performance of the company to both internal and external users. By analyzing the annual financial statements through indicators, it is possible to assess the company's financial condition, its movement and business ability. By analyzing the indicators, internal users, and above all the management, can objectively see the results of the previous activities and plan future performances. A prerequisite for a quality analysis of annual financial statements is that all events in the company's business books are credibly presented. Therefore, it is necessary to adhere to financial reporting standards when keeping business books. In the paper, the theoretical assumptions are illustrated on the trading company Bobis Ltd. According to the Financial Agency, the market for the production of bread, fresh pastries, confectionery and cakes in the Republic of Croatia is fragmented, i.e. it is characterized by a large number of market competitors. In the mentioned market during 2021 there were 928 entrepreneurs who generated a total income of HRK 4.9 billion. From the mentioned number of entrepreneurs, Bobis Ltd. is eighth in terms of revenue. In order for the company to be able to develop in a very dynamic market, the management needs to have credible and quality information. Therefore, the paper presents an analysis of the annual financial statements of Bobis Ltd. over a five-year period. The purpose of the aforementioned analysis is to provide information to the company's management about potential problems and provide a framework for possible solutions. In addition to the above, the paper also analyzes certain previously made management decisions.