Student M is preparing consolidated financial statements for a parent company and its subsidiary using the equity method. Given the following information:

• Parent Company's Investment in Subsidiary: $300,000
• Subsidiary's Net Income: $80,000
• Dividends Paid by Subsidiary: $15,000
• Fair Value of Subsidiary's Identifiable Net Assets: $500,000 Prepare the consolidated Income Statement, Balance Sheet, and Cash Flow Statement.