diff --git a/.gitignore b/.gitignore
index e4c5b0e314..b620619d8c 100644
--- a/.gitignore
+++ b/.gitignore
@@ -30,7 +30,7 @@ build
 
 # Dependency directory
 # https://www.npmjs.org/doc/misc/npm-faq.html#should-i-check-my-node_modules-folder-into-git
-node_modules
+# node_modules
 
 lib
 dist
diff --git a/src/core/components/files.js b/src/core/components/files.js
index 6a9f5fbced..e0f07f9215 100644
--- a/src/core/components/files.js
+++ b/src/core/components/files.js
@@ -80,7 +80,7 @@ module.exports = function files (self) {
 
     cat: promisify((ipfsPath, callback) => {
       if (typeof ipfsPath === 'function') {
-        return callback(new Error('You must supply a ipfsPath'))
+        return callback(new Error('You must supply an ipfsPath'))
       }
 
       pull(
@@ -89,6 +89,7 @@ module.exports = function files (self) {
           if (err) {
             return callback(err)
           }
+          if (!files || !files.length) return callback(new Error('No such file'))
           callback(null, toStream.source(files[files.length - 1].content))
         })
       )
diff --git a/src/core/components/init-assets.js b/src/core/components/init-assets.js
index 33778a50ef..1d6d46baad 100644
--- a/src/core/components/init-assets.js
+++ b/src/core/components/init-assets.js
@@ -6,12 +6,12 @@ const glob = require('glob')
 const importer = require('ipfs-unixfs-engine').importer
 const pull = require('pull-stream')
 const file = require('pull-file')
-// const mh = require('multihashes')
+const CID = require('cids')
 
 // Add the default assets to the repo.
 module.exports = function addDefaultAssets (self, log, callback) {
   const initDocsPath = path.join(__dirname, '../../init-files/init-docs')
-  const index = __dirname.lastIndexOf('/')
+  const index = initDocsPath.lastIndexOf('/')
 
   pull(
     pull.values([initDocsPath]),
@@ -20,7 +20,7 @@ module.exports = function addDefaultAssets (self, log, callback) {
     }),
     pull.flatten(),
     pull.map((element) => {
-      const addPath = element.substring(index + 1, element.length)
+      const addPath = element.substring(index + 1)
       if (fs.statSync(element).isDirectory()) {
         return
       }
@@ -34,14 +34,10 @@ module.exports = function addDefaultAssets (self, log, callback) {
     pull.filter(Boolean),
     importer(self._ipldResolver),
     pull.through((el) => {
-      if (el.path === 'files/init-docs/docs') {
-        log('to get started, enter:')
-        log()
-        log(`\t jsipfs files cat /ipfs/QmPZ9gcCEpqKTo6aq61g2nXGUhM4iCL3ewB6LDXZCtioEB`)
-        // TODO when we support pathing in unixfs-engine
-        // const hash = mh.toB58String(el.multihash)
-        // log(`\t jsipfs files cat /ipfs/${hash}/readme`)
-        log()
+      if (el.path === 'init-docs') {
+        const cid = new CID(el.multihash)
+        log('to get started, enter:\n')
+        log(`\t jsipfs files cat /ipfs/${cid.toBaseEncodedString()}/readme\n`)
       }
     }),
     pull.collect((err) => {
diff --git a/test/cli/files.js b/test/cli/files.js
index afcf581112..2a71143387 100644
--- a/test/cli/files.js
+++ b/test/cli/files.js
@@ -238,6 +238,14 @@ describe('files', () => runOnAndOff((thing) => {
       })
   })
 
+  it('cat non-existent file', () => {
+    return ipfs('cat QmPZ9gcCEpqKTo6aq61g2nXGUhM4iCL3ewB6LDXZCtioEB/dummy')
+      .then(() => expect.fail(0, 1, 'Should have thrown an error'))
+      .catch((err) => {
+        expect(err).to.exist()
+      })
+  })
+
   it('get', () => {
     return ipfs('files get QmPZ9gcCEpqKTo6aq61g2nXGUhM4iCL3ewB6LDXZCtioEB')
       .then((out) => {
diff --git a/test/cli/init.js b/test/cli/init.js
index 919a74f3af..7953f0fcaf 100644
--- a/test/cli/init.js
+++ b/test/cli/init.js
@@ -12,6 +12,9 @@ describe('init', () => {
   let repoPath
   let ipfs
 
+  const readme = fs.readFileSync(path.join(process.cwd(), '/src/init-files/init-docs/readme'))
+                   .toString('utf-8')
+
   const repoExistsSync = (p) => fs.existsSync(path.join(repoPath, p))
 
   const repoDirSync = (p) => {
@@ -27,12 +30,17 @@ describe('init', () => {
   afterEach(() => clean(repoPath))
 
   it('basic', () => {
-    return ipfs('init').then(() => {
+    return ipfs('init').then((out) => {
       expect(repoDirSync('blocks')).to.have.length.above(2)
       expect(repoExistsSync('config')).to.equal(true)
       expect(repoExistsSync('version')).to.equal(true)
-    })
-  })
+
+      // Test that the following was written when init-ing the repo
+      // jsipfs files cat /ipfs/QmfGBRT6BbWJd7yUc2uYdaUZJBbnEFvTqehPFoSMQ6wgdr/readme
+      let command = out.substring(out.indexOf('files cat'), out.length - 2 /* omit the newline char */)
+      return ipfs(command)
+    }).then((out) => expect(out).to.equal(readme))
+  }).timeout(8000)
 
   it('bits', () => {
     return ipfs('init --bits 1024').then(() => {