When the narrator says, "A picture of a little boy and his friends," he is refering to his real life situation.

The story isn't about a little boy and his friends. This story is actually about a man who is caught doing something he shouldn't be doing. The three friends are actually police officers, and when they begin to point and laugh, they become suspicious. So when they come to pick up the man, they get ready to bring him to prison.

An when the three friends drop the little boy down the cliff; the three police officers are actually in the station, and getting ready to put him in jail. Then when the little boy falls into the box and can't get out. It's actually saying that the man is in prison now. When he says, "what did I do wrong," he's actually asking himself what he did wrong to land himself in prison.