Answer:
Julius' original number is 3.
Julius said “Hey, you cheated!” because Laila did not pick a number between 1 and 10.
Explanation:
In the first round let's say Julius picked a number
, when he adds 3 to it, multiplies the sum by 5, and subtracts 7 from the result, he gets

and since we hear Julius exclaiming "twenty-three", this means

solving for
we get
.
which is Julius' original number.
In the second round when Laila picks the number and goes through the same procedure, her final result is 108, which means

solving for
we get

which is Laila's number, and since it certainly is not between 1 and 10, Julius said "you cheated" by which he meant that Laila did not pick a number between 1 and 10.