Oscar the Grouch is happy to see the viewers for a change, because he is having a grand opening sale at the Oscar's Odds and Ends Store. He is selling dandy things like half a record, broken flower pots to put dead plants in, and a comb with only one tooth. Susan walks by and Oscar compliments her dress and says he has the perfect necklace to go with it--a bicycle chain. He shows Gordon more of his wares, including back issues of The Daily Grouch, and a knob for a color television set--all you have to do is add the color television set.
Oscar learns he needs to use addition when running a store.
Bill Cosby has a hard time trying to count four kids.
U - Umbrella (repeat)
Susan comes back to Oscar's store to buy the flower pots, but finds a sign saying that he is out of business. He has learned that to run a store, you have to be open and wait on people when you'd rather be doing something else, and you have to learn to count and add to know how much money you made, but worst of all, you have to be helpful and courteous to people! What kind of a grouch would he be if he did that? So he is out of business forever.
Film: Water water water water... Look at all the water. There's water everywhere.
Ernie and Bert: Bert shows Ernie pictures, and he needs to tell what happens next in each one. Ernie tells Bert some very imaginative stories. For the last picture (a man about to drive his car over a nail), Ernie says, "I think a monster's going to appear". Sure enough, behind Bert's back, Cookie Monster appears: "Can I have a cookie?" (First: Episode 0056)
Cartoon: "Poverty U" -- A figure gives a salute to the letter U, and presents the letter with a bouquet of flowers. (First: Episode 0036)
Gordon plays a game of "What Will Happen?" with Ernie. After Ernie guesses correctly what will happen when Gordon drops a ball and turns on a radio, Gordon asks what will happen when he picks up a bell and shakes it. Ernie says the bell will ring. Gordon states that a monster will come out and start blowing a flute. Ernie thinks that's silly, but is surprised when that exact thing happens. Gordon admits that he had worked it out beforehand with Cookie Monster, and gives him a cookie. After Gordon leaves, Ernie has an idea for a trick to play on Bert. (First: Episode 0031)
Ernie tells Cookie Monster to hide, and when he hears a bell, come out and play the flute. Cookie asks for payment and receives a whole box of cookies. Bert comes and Ernie asks him what happens when you shake a little bell. Bert answers that the bell rings, and that's all. Ernie says that he always thought that when the bell rang, a monster appeared playing a flute. Bert disagrees, and shows Ernie by ringing the bell. Nothing happens. After Bert is gone, Ernie asks Cookie what happened, and he replies that he can't play the flute with a mouth full of cookies. (First: Episode 0031)