The inventory count is a crucial exercise that needs to be carried out in any company. The stock which is one of the company’s non-current asset is an essential element in the preparation of the statements of comprehensive income and the financial position of Davis Hydraulics Ltd. The analysis of the stock is usually conducted at the start of the fiscal year and the end. It aims at identifying the opening and closing inventory(Hocking, 2000). Upon determination of the initial stock quantity, the newly acquired goods are added to the original stock and finally the final portion of stock is deducted from the resultant amount of inventory. The emerging difference is the cost of sales.