Question $7$ of $34$

In Step $1,$ a company orders $$200$ of Inventory $"$on credit," without paying for any of it in cash.

In Step $2,$ it turns this Inventory into finished products and sells and delivers it to customers for $$400$ in sales.

However, the customers do not pay upfront in cash, so the company cannot pay its suppliers for this Inventory yet.

Finally, in Step $3,$ the company collects the $$400$ in owed cash and pays its suppliers.

Explain how the company's Cash balance changes in Steps $1-2($combined$)$ and then in Steps $1-3($combined$).$

Cash is down by $$250$ in the first two steps; over all three steps, it's up by $$150.$

Cash is down by $$150$ in the first two steps; over all three steps, it's up by $$75.$

Cash is down by $$50$ in the first two steps; over all three steps, it's up by $$150.$

Cash is up by $$350$ in the first two steps; over all three steps, it's up by $$150.$