Brake issues
 

Went to get my 97 4runner inspected and my brakes are not working well enough to pass state inspection and my parking brake is barely working.

The brakes are kinda spongy but, if I push the brake pedal all the way to the floor, release it, and then immediately push it down again the brakes are firm.

My dad says that we should be able to adjust the brakes to where they will work.

Any advice?

Bleed the brakes once or twice, sounds like a lack of fluid presure. Bleed the farthest wheel from you first, and the closest last, then adjust as needed. As for the park brake chances are the cable is stretched.

Agree on bleeding.

As far as the e-brake, a common problem is the bellcranks--the little levers on the outside of the back of the drum where the cable attaches. That pivot seizes up and then the e-brake doesn't work. This also prevents the rear drums from adjusting correctly.

Brakes have been bled
Took it up to my dads work today. Rear shoes are almost gone but we adjusted them out and they work fine now. Need new axle seals though
The bell rank is frozen on one side so ebrake still doesnt work.
So brake job and axle seals are next

check your brake booster.