When the train arrives in Pine Tree, there's not a snowflake in sight, and chances of it falling appear dim. Bob and Phil discover that the inn is run by their former commanding officer, General Waverly. Waverly has invested all of his savings into the lodge, which is in danger of failing because there's no snow and thus no guests. To bring business to the inn, Bob and Phil bring the entire cast and crew of their musical Playing Around, and add in Betty and Judy. Bob and Betty's relationship blooms ("Count Your Blessings") and they spend a good deal of time together. Meanwhile, Bob discovers the General's request to rejoin the army has been rejected. He decides to prove to the General that he isn't forgotten.