Lance informs Ruth that he's going to pay for the repairs to Karl's car.
Hannah is cross at Debbie about Lance
Jo spots Cath and Mal kissing across Lassiter's
Karl is shocked at the size of the final bill for the repairs to his car. Susan points out that the insurance will cover most of it, which will only leave Lance to pay $300 excess fee. Karl decides to head over and see Ruth about it, as he promised he would keep her in the loop.
Lance arrives back from work with his first pay packet. Anne is impressed and asks if he'll buy a pair of shoes for her. Lance points out that it's going to have to go towards the money he owes Karl, and then after that, he's saving up for a computer game. Anne goes to answer the door; it's Karl. As Ruth isn't home, Karl leaves the repair quote with Anne and heads off. Lance decides to read the quote and sees the final cost as $1800. Shocked, he decides it would be best not to tell Ruth.
Jo arrives back to find Luke messing with the video player, trying to find a blank video. He apologises for the mess in the kitchen; he and Sarah tried and failed at making popcorn, but Jo offers to clear it up. Luke is puzzled by her sudden carefree attitude towards everything.
Cath and Mal settle on orange juice In Da Pub Innit. Cath is relieved that Jo isn't working that evening, and worries about having to tell her. Mal is just happy to have her company, and jokes that they have many dates stretching ahead of them, if Cath agrees of course.
Debbie is annoyed at how long Hannah took in the shower, as she knew she'd be late for work, but Hannah doesn't seem to care, and sees it as payback for when Debbie embarrassed her over Lance. Debbie heads off to get ready as Anne arrives. Anne wonders what she should get Toadie for his birthday, but Hannah reckons cake, and suggests she has a go at making it.
Jo and Luke are having breakfast when Cath appears. Jo spots the roster, and learning that she's on breakfast duty, grabs the bowl from Luke's hand and goes to wash it up. While she has gone, Cath asks Luke what is up with Jo. Luke agrees she's changed, but admits he'd rather have happy Jo, than glum Jo. Cath agrees, but asks that they keep the Mal issue quiet, as she still isn't ready to tell Jo yet.
Anne has come to find Lance to borrow some cash for the cake ingredients. Lance agrees to lend her the money on the basis that she pays him back when pocket money comes around. Lance's boss Ned isn't so happy at seeing him talk to his sister, and orders him to get back to work. Anne thinks he is rude, but Lance reckons he's okay. Lance tells Anne that Ned has offered him some extra work selling Christmas Trees. Ned reappears but is cross to see Lance is still speaking to Anne, so she finds Hannah and heads off again.
Anne and Hannah have successfully made both a cake, and a mess in the kitchen. Anne reckons they should've made three for the effort they put in, but on mentioning Lance, Hannah quickly changes the subject. She admits she has a crush on Lance, but that he doesn't want to date. Anne reckons they can be friends, she just needs to go and talk to him.
Debbie spots Jo looking for a new flat; she asks if she knew about Mal and Cath. Debbie admits they were in the pub the previous evening. She tells Jo not to blame herself, as she wasn't to know, but Jo is more interested in moving on. Debbie offers to help her flat hunt.
Hannah is telling Lance how she doesn't want to continue avoiding him, and that it would be nice if they could become friends. Lance isn't saying much, causing Hannah to continue to witter on. Lance eventually cuts her up and worries that she has amnesia. He told her last week that he's happy to be friends with her. Hannah worries that he was just saying it out of kindness, but Lance insists.
Debbie and Jo arrive back to find Anne in the kitchen with the cake. Debbie is shocked at the mess, so sends Anne off to get Hannah back. While Anne is gone, Debbie goes to make a coffee, but ends up knocking the finished cake onto the floor.
Mal is busy telling Dahl that she needs to get out more and see the world. Karl and Susan reckon he's either found $20 or he's in lurve! Mal reveals it's the latter, and that he had a good night out with Cath. Luke arrives with the video of the basketball game, and seeing how smitten Mal is, reveals that he thinks Jo might be over it. Mal is all keen to go and see Cath that instant, but Luke informs him they have a game of basketball to watch first.
Debbie and Jo have attempted to put the cake back together, but reckon they might need some icing to cover the gaps. Jo feels it's time to leave as it's about to get busy, so heads off. Lance, Anne and Hannah arrive back to find the cake ruined. Hannah is furious with Debbie, but she offers to pay for new ingredients to make a new cake. Debbie warns them to tidy up before Phil gets home, and comments to Anne to use her own kitchen next time.
Jo arrives back to find Mal and Cath messing around on the sofa. Cath tries to explain, but Jo stops her. She reveals she saw them outside Lassiter's and is happy for them both. She heads off to her room, leaving them both puzzled.
Hannah is tidying up the kitchen, while Anne figures they still have enough ingredients for a basic sponge cake. Lance reckons Toadie would be happy with a sponge cake, but he has to head back to work. Anne asks Hannah how their chat went, and Hannah informs her they are friends again.
Luke tells Mal and Cath that he reckons they should tell Jo the whole truth. Cath explains that they tried to, at which point Jo reappears. She reiterates that she is fine with it, but will be moving out when she finds somewhere else to go.
Lance arrives early for his shift, to find his boss Ned loading plants into the back of a truck. Ned warns him to head inside, but Lance spots him paying off the driver. Lance is curious and asks what is going on. Ned pulls a story about shifting the dead plants, but Lance isn't buying it. Ned offers him a share of the profits, so long as he doesn't tell anyone about it.