Other merchants were doing likewise. It is right there before your eyes in the burgeoning receivables and inventory figures. Unfortunately the new statements of cash flow are not required in quarterly financial reports and the lags in reporting may reduce their usefulness for decision making. There are other warning signs right on the Value Line sheet. This is not a good sign.
Dividends are usually as sign of solid cash earnings.
Qualitatively there are some important points to note. It seldom makes sense to buy stock in a company that is ranked lower than second in its industry. Put another way, you should have very compelling reasons to buy a fifth ranked competitor in a prosaic industry like floor care appliances, or any similar industry. I can't think of any reasons that would justify it. The story of Regina is not as funny, but the business plan was just about at overblown.