Abstract: An improved prefabricated cabinet assembly similar in appearance to professionally installed customized cabinets, but that is easily, quickly and inexpensively installed in different configurations. The cabinet assembly comprises at least one cabinet unit having opposed sides and a rear wall. A hanger assembly is provided to suspend the cabinet units on a wall structure, comprising a horizontal bar mounted to the rear wall of the cabinet units having a downward-facing groove, interlocked with a horizontal bar mounted on the wall structure which has a corresponding upward-facing groove. The hanger assembly permits sliding cabinet units along the wall to a desired spaced-apart position. Spacer panels are mounted to span the spaces between adjacent cabinet units. Each of the spacer panels has a plurality of spaced apart grooves cut into its rear face, along with a plurality of visible, spaced apart cut lines to permit easy cutting of the spacer panels at desired widths.