Untracked and Modified

Create another file called setup.pl with a single line and also change the README file.

$ git status

# On branch master
# Changes not staged for commit:
#   (use "git add <file>..." to update what will be committed)
#   (use "git checkout -- <file>..." to discard changes in working directory)
#
#       modified:   README.txt
#
# Untracked files:
#   (use "git add <file>..." to include in what will be committed)
#
#       setup.pl
no changes added to commit (use "git add" and/or "git commit -a")

Here we can see that one of the files is modified and the other find is new, it is not even tracked by git.