\[\frac{32^{3} \cdot 8^{2}}{16^{5}} = \frac{\left( 2^{5} \right)^{3} \cdot \left( 2^{3} \right)^{2}}{\left( 2^{4} \right)^{5}} =\]
\[= \frac{2^{15} \cdot 2^{6}}{2^{20}} = 2^{15 + 6 - 20} = 2^{1} = 2.\]