During which step in the sales cycle do you summarize the prospect's goals and objectives, solve the problem(s), and develop the solution?

I belive it would be at the preparation phase.
The preparation phase must be completed before you try to make an approach to potential clients.
To succesfully pass this phase, you need to be able to think in your client's position and identify all of their needs so you can make an appropriate planning to address that.

Step three is when you summarize the prospect's goals because it comes after step one when you identified the prospect and step two when you to start to build a relationship to know your clients needs. By step three, you begin to build a relationship to know your client's needs. Step 4 and 5 would involve solving the problem(s) and developing solutions because that is when you deliver persuasive content and present prepared answers for objections.