Instructions/Steps:
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Hull

Insert a new layer, rename it “hull”.

Select the Trapezoid shape tool.

Set it to Fill Only.

Select a color for your boat.

Draw a trapezoid like this…

Then drag the bottom circle to the top to flip it…

So you should have a boat shape like this…

Resize it so it’s about this size. Position it near the bottom with just a bit of room below. [Enter] or click off the shape to set it.

Masts

Insert a new layer and call it “mast”.

Select the Shape Tool – choose Rounded Rectangle.

Set the colors back to default …or make the primary color a grey.

Draw out a mast like this…

Draw out a horizontal mast/beam like this (similar thickness as the vertical beam)…

Click on another tool or [Enter] to set the shape.

Move the mast layer behind/below the boat.

Sails

Sail Right

Insert a new layer, rename it “sail R”. Make sure it’s at the top.

Select the Shape Tool – and choose Right Triangle.

Set the color for your sail.

Draw a triangle on the right…

Make sure you’ve drawn it in its own layer!

Now go to Effects>Distort>Bulge… and play with the sliders to get something like this.

Sail Left

Insert a new layer, call it “sail L”.

Change your color…

Select the Right Triangle shape tool again

Draw a triangle on the left…

Drag the middle circle on the right over to the left to flip it…

Now move the sail over into position…

Again go to Effects>Distort>Bulge and make the sail look like it’s blowing in the wind…

Water

Insert a new layer, call it “water.”

Select the Brush Tool

Set the thickness to 80. Make sure hardness is 100%.

Set your primary color to blue.

Draw in wavy water above the boat.

Move the layer down so it’s just above the Background layer.

Insert a new layer for “water front”. Move it above the hull layer.

Change your color to a lighter/darker blue. Draw in some waves in front of the boat, slightly over the hull.

Make sure you draw it in the new layer, separate from the other water.

Sky

Select the Gradient Tool.

Set your color to a “sunset” color.

Make sure the Background layer is selected…

Then click and drag it down…

[Enter] to set the gradient.

Sun

Insert a new layer, rename it “sun”.

Select the Ellipse Shape tool.

Set the color to yellow or orange for the sun.

Draw a circle for the sun off the top left corner.

Effects

Sun

Select the sun layer and go to Effects>Blurs>Gaussian Blur – blur it a bit to make it softer.

Hull

Select the hull layer and go to Effects>Distort>Bulge and reshape it so it’s more curved. Play with the 4-pointed arrow to get something like this..

Sail

Select one of the sail layers and add the fragment effect (Effects>Blurs>Fragment). Just leave settings on default.

For the other sail layer, you can just choose Repeat Fragment at the top of the top of the Effects menu.

Water

Select one of the water layers and go to Effects >Distort > Dents

Then select the other water layer and Repeat Dents.