I agree with Su.ki. Somebody probably used "bag" as a polite way to say an aggressive statement. Bag is usually replaced with expletives, like hell, crap, sh*t, f*ck, etc

They mean the same. Some people may prefer one over the other, but I use them interchangeably. -US English

What is the sentence we are correcting?

If it's a short conversation. Where are from, what do you (for work or hobbies), what brought you here and who are you here with. If you both answer the questions this is about a 5 minute conversation that will help you feel comfortable with the person and ask more questions based on how they answered. If they are friendly, then continue asking questions. Otherwise, say goodbye and have a nice day. Also note, this should be a natural conversation, not a rapid fire interrogation :) Good Luck.

Su.ki is right about the ARE correction, watch your subject-verb agreements. You had a plural subject, so the verb must be plural too. To answer your question, äre worked out means in progress. They started it, but did not finish it yet. Also, to give you some context, whenever you hear anything about the government (ie. states and regulations) and the phase "being worked out" in the same sentence, there is an expression "don't hold your breath." Which means it can take a very long to complete, if it gets done at all. -US English

I thought of another word, frivolous. That's like at a 10th or 11th grade reading level, but most college educated people would know what you meant. ie. He is frivolous with his money. This would be a common sentence among educated circles. Otherwise, what I said before is true; stick with simple words. http://dictionary.reference.com/browse/frivolous

#3, change that to when, since you're talking about time. Otherwise, very good.