After the graduation exercises, Francie, Neeley, Katie, and Aunt Sissy (Joan Blondell) go out for ice cream sodas. While they're drinking them, Francie catches the eye of a boy, and he asks her to go to the movies with him. Katie leaves 50 cents for the 30 cent sodas and tells the waiter to keep the change, much to Francie's delight. 'There's times when feeling good and things like that is important,' Katie explains to Francie, showing that she has learned something from Johnny. The four of them then go home, where Sissy's husband Steve (John Alexander) is holding their new baby and Office McShane (Lloyd Nolan) is holding Baby Annie Laurie. After Steve and Sissy leave, McShane stays on for a while. He asks Katie if she would might 'keeping company' with him, and Katie agrees. He assures Francie and Neeley that he isn't trying to take Johnny's place but would like to be considered as a good friend to them. He asks Katie for permission to adopt Annie Laurie, since she never looked on the face of her real father. Katie replies, 'If the time comes, she'll have your last name.' In the final scene, Francie and Neeley are on the roof, talking about how Annie Laurie McShane will have an easier life than they had but not nearly as much fun. Francie looks down at the courtyard and notices that the tree has begun to grow again, 'just like Papa said it would.'