The answer is 162 stickers.
j - the number of Jared's stickers
h - the number of Heather's stickers
- Jared has 42 more stickers than Heather: j = 42 + h
- Jared gives away 1/6 of his stickers to his friends (j - 1/6j) and Heather gives away 1/4 (h - 1/4h) of her stickers to her cousins. Now Jared has 45 more stickers than Heather: j - 1/6j = 45 + h - 1/4h
We have two equations and we will use the substitution method:
j = 42 + h

_______________

Since Heather started with 120 stickers, Jared started with 162 stickers:
j = 42 + h = 42 + 120 = 162