A recipe calls for 1/4 kg of sugar per cake. If John has 5/2 kg of sugar, how many cakes can he bake?

To find out how many cakes John can bake, we need to divide the amount of sugar he has by the amount of sugar needed per cake.

John has 5/2 kg of sugar.
The recipe calls for 1/4 kg of sugar per cake.

To divide these fractions, we multiply the first fraction by the reciprocal of the second fraction:
(5/2 kg) / (1/4 kg) = (5/2 kg) * (4/1 kg)
= (5*4)/(2*1) kg
= 20/2 kg
= 10 kg

So, John can bake 10 cakes. Answer: \boxed{10}.