New at this and VERY Confused!! LoL

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I just started using MyFitnessPal this past week. I am VERY confused at how it works!! I weigh 160 and would love to be anywhere between 130-140 LBS. It said that I need 1200 calories a day. Is that before all the exercise or after? Do I eat back the calories that I lose? What do I need to do to lose weight and not just maintain!?!? LoL so very confused!!!!!!!!!!!!

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