I thought it would be a great book for kids that are working on attributes, prepositions, syntax, expanding length of utterances and asking "where" questions etc. Also, this is great if you have a child working on "sh" at the sentence level.
These pictures can be used for sequencing, or you can put them around your classroom for your students to find ("the bath sheep is on top of something yellow."). You could have kids find the pictures and then when it's their turn they can read the line in the book.
Here is a sentence building strip to help them read the book with you and work on that grammar.
Don't forget about that green sheep!