1. Cut a 2" square from bottom corners of each bag panel (Diagram 5).
2. Center ends of handles along top edge of bag panels, 3" from outer edges; baste in place (Diagram 6). Press seams open.
3. Join bag panels along side and bottom edges to make bag body. Press seams open.
4. To box bottom corners, match each side seam of bag body with bottom seam; stitch across straight edge (Diagram 7). Turn bag body right side out and press.
5. Using lining units, repeat Step 1, cutting squares from bottom corners, and Step 3, leaving a 6" opening along one bottom seam to make lining.
6. Repeat Step 4 to box bottom corners of lining. Do not turn lining right side out.
7. Insert bag body into lining (they’ll be right sides together). Sew together around top edge with 1/4" seam.
8. Turn bag body and lining to right side through opening in lining bottom seam. Hand-stitch opening closed. Push lining down into bag body and press upper edge of bag. Topstitch 1/4" from bag upper edge through all layers to complete bag.