When the train arrives in Pine Tree, there isn't any snow. 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. It is failing because there's no snow and no guests. To bring business to the inn, Bob and Phil bring the entire cast and crew of their musical "Playing Around". They add in Betty and Judy to the rehearsals. Bob and Betty's relationship blooms and they spend a good deal of time together.