Just give a general response to this in a few paragraphs in regards to income statement and a cash flow statement can be used within managing a project.

In the few projects that I have been a part of, we typically track revenues and expenses with the amount of people that charge to our budget and control account. As an example, one person who worked exactly 40 hours in one week on our project would equal one head of labor charged for that week. For the most part, engineers work multiple projects at a time, so they are not always a full 40 hours a week dedicated. There could be 5 engineers working on our project, but if their work only adds up to 40 hours, then it would still equal one head of labor charged to the budget. Once a head is charged, it is known as an actual cost occurred, since it cannot be undone.

An income statement could be used on projects where there is work left to go and that remaining work must be planned out. An income statement will show how much money the project has made up to a certain point in time. The project management team can then use that info to determine how much budget is remaining and plan out the rest of the work that needs to be accomplished. If the first phase of a project takes in more income than planned, then the project manager will have more budget to work with for say phase 2. I am sure this happens all the time :)

One current report that is used in our projects is a supplier position statement. These are used when negotiating and contracting suppliers. They show suppliers bids versus how much money the project has allocated to putting suppliers on contract. They are a helpful tool during the contracting process when the information must be reported up through the executive level.