My god man, did you set the Space Needle on fire?
Is this your friend's first foray into filmmaking? If so, it's understandable that he doesn't have much equipment, but if he plans on producing more, he might want to invest in a microphone, especially if he's aiming for quality audio. On-camera microphones tend to have a very short range, and for wide shots where you're planning to have two subjects in the frame, the audio drop off can be quite steep. It's better to have a boom mic suspended over the action, or perhaps a small mic hidden on a table, right in the thick of things.
If he plans on making a serious hobby of this, he could probably benefit from perusing http://www.bhphotovideo.com/
, which can provide all manner of professional quality equipment like lighting, microphones, cameras, and various accessories. If he's unable to buy equipment, you should also be able to find places that rent the stuff out, or perhaps you can stop by your local theater or production company and ask to borrow what you need (though I'm sure they'll want favors).
Also, you should ask your friend if he has a tripod. Probably one of the cheaper pieces of equipment (depending on the weight of the camera), but it makes a tremendous difference in quality.