Let's define the next variables:
x: Sarah's age
y: Mike's age
Sarah is 13 years older than Mike, then:
x = 13 + y
The sum of their ages is 37, then
x + y = 37
Substituting the first equation into the second one, we get:
(13 + y) + y = 37
13 + (y + y) = 37
13 + 2y = 37
2y = 37 - 13
2y = 24
y = 24/2
y = 12
Replacing this result into the first equation:
x = 13 + 12
x = 25
Sarah is 25 years old and Mike is 12 years old