You may have wondered where Popeye was while Cloudy was getting all the info in the last scene.
Well, here he is, head down on the bar, daylight streaming through the windows. He wakes up, finishes his drink, and makes his way outside.
Popeye is driving home (Shmoop would like to take this moment to remind you never to drink and drive), when he encounters a young woman cyclist in red boots. The camera watches her, and so does Popeye.
Cloudy, comparatively dapper, heads into an apartment building and down a narrow subterranean hallway. He knocks on Popeye's door, and Popeye tells him to let himself in.
When Cloudy lets himself in with a key, the door is blocked by a bike, and he sees a pile of clothes (including those red boots). Popeye is naked, covered by bedclothes, ankle cuffed to the bed frame.
Cloudy tosses the handcuff keys to Popeye and sits down as his partner puts on his pants and wakes himself up. They discuss the warrants that Simonson has gotten for them, along with Mulderig and Klein.