With right sides together, pin the two body/lining sections together, and stitch around the outside leaving a 3" opening in the lining lower edge (2).
Box all four corners using the following technique: Pinch each corner aligning the seams of the adjacent purse edges. Stitch across the resulting triangle 1" from the point (3).
Turn the purse inside out through the opening in the lining. Push the lining down into the purse, rolling the outer fabric 3/4" to the inside of the purse.
To make the handles, press under 1/4" at one short end of each 14" strip.
Right sides together, fold each strip in half lengthwise. Stitch the long edge and across the raw short end. Turn the tubes right side out and press. Topstitch both long edges of each strap.
Being careful not to twist the straps, pin each strap end in place 3/4" from the purse upper edge and 1 1/2" from the side seam. Stitch in place as shown (4).