Shearon Sheep is going to begin school. She is talking to her friend when she realizes she doesn't know what the ABC's are. Her mother helps her learn the alphabet and numbers.

Shearon Sheep thinks she knows what color her wool is but gets worried when her friend has a woolen sweater that is green. She asks her mother about colors and what items are made with wool. Together they go through the colors and learn what can be made of wool and what things are naturally a specific color.