Old Mrs. Moody has a terrible cold, and while she waits to see the doctor, Catbaloo tells her the story of a little girl and her goat cart.

Anderson Kate lives high on a mountaintop. One day, she and her mother bake a chocolate cake for Grandmother's birthday. Anderson places the cake in her cart and sets off down the mountain to her grandmother's house in the valley below.

Along the way, Anderson stops to listen to her neighbors' troubles and offers them a piece of the chocolate cake. By the time she reaches her grandmother's house, the cake is gone.

But wonderful things happen on her walk back up the mountain. At each stop, Anderson discovers that one neighbor has exactly what another neighbor needs.

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