Mr. Krabs wants to make more money, and Squidward suggests a talent show. Everyone is invited, including SpongeBob's parents, and Squidward thinks he will be the best act. He even tries to make SpongeBob think he is acting by cleaning up afterwards. SpongeBob, however, wows the crowd with his cleaning 'act'.
SpongeBob tries to be friends with Plankton, whom SpongeBob thinks is only evil because he's lonely and made fun of. But Mr. Krabs doesn't believe it. He knows Plankton is evil on the inside. He puts Plankton to the test only to prove to SpongeBob that Plankton is only after the formula.