A while back, I made a small sign holder to place on my buffet and change out seasonally, you can see it here. I hadn't made anything patriotic for it yet so I decided to make a distressed flag.
I started out with a small wooden plaque that I buy from walmart for only.97. I used a ruler to measure for the lines and drew them on with a pencil. As you can see in the picture, I made the blue box, 2.5"x 3" and the lines .5".