The last step just adds a finishing touch, by adding some simple decorations to the tree.
Add a new layer by clicking the Add New Layer button in the Layers palette. Now click on the Ellipse Select tool and, holding the Shift key to constrain the the tool to drawing perfect circles, add a circular selection beneath one branch of the tree. In the Colors palette, set the Primary color to red and then go to Edit > Fill Selection. You can then add more decorations to complete the effect, as seen in the first image of this step by step piece.

