Please Help With Calories...

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I would love help from everyone who has lost weight on MFP because I am so confused. Here's an example:

My Calorie Goal is set for 1120. (yes, I am 4'7 and I know you shouldn't eat lower than 1200 Calories, but this is what I calculated with my BMR subtracting 500 a day to lose 1lb a week.) So yesterday, I worked out and burned 705 calories. I ate 1527 calories, but my Net was 822. Showing:


Goal Food Exercise Net Remaining
1120 1527 705 822 298

Does this mean I am eating to little? But If I eat my goal and my exercise calories, that would be 1825. I am scared that, for my
height, I will not lose eating that much. I am so confused! What am I doing wrong. I am not losing. I am working out and I am
thinking, with all this hard work, I should see the scale move. But it's not..

Another example is, a friend of mine is doing MFP and doesn't work out and is losing faster than me. What am I doing
wrong. I can't get in the mind set to eat more if I work out. Should I???

Please friend me and help me. Thanks