1. We create the fire by lasso tool to draw the shape of it.
2. Delete the what inside the shape, which turn it to be white and then use the brush (black) and surround the white shape with black line to be look like a fire.
3. Then draw draw a rectangle and before that pick to colors for fire such as yellow and red, then just use them for that rectangle by clicking into filter > render > cloud then will be look like a burning fire somehow.
4. Put the color on the fire and click shift-Ctrl plus I key button to select the outer area and then press delete or back space.
5. After all these 4 steps go and click filter again and choose liquefy, when the window opens choose the third icon in the left-side which is Twirl tool to have some effects for the fire, then will be look like this below.
7. Use the lasso tool again but this time around this Yoga man's head, go to filter > render > cloud but this time change the colors to black and white. If you want to change some effects of that smoke just go to the right down corner above the layers, channels and paths area you will find a list of some effects such as darken, color, etc. choose whatever you like to choose.
This is my final work as Jpg picture.

*The second assignment will be uploaded soon.
Thanks..