A good problem to do mentally, without paper...
Since the ages are in the ratio 4/1 to start, and 12 years later 2/1, 12 years MUST represent twice Katie's age (4-2 = 2). Thus, 12/2 = 6 is Katie's age and Emily is currently 4*6 = 24.
Check:
In 12 years, Emily will be 24+12 = 36 and Katie will be 6+12 = 18.
36/18 = 2/1
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Alternate (algebraic method):
x = Katie's age
4x = Emily's age
4x + 12 = 2(x + 12)
4x + 12 = 2x + 24
2x = 12 --> x = 6, 4x = 24, as above.