This is the original image

Here is the retouched image. First I corrected the tonal values. With the help of the smudge tool, healing brush tool, and the clone stamp tool, I smoothed out the wrinkles in the flag. Then, using a combination of the magic wand, magnetic lasso, and the lasso, I selected all of the areas to be colored red. I applied a very large sized brush at 50% opacity to color the selected areas. I then repeated this with the area to be blue on the flag and the area to be gold top of the pole. Then I selected the sky and paint-brushed it with a very dark navy blue at a very light flow and opacity. To finish the look, I used a soft edged brush with low flow and in a dark blue around the edges of the image, but only on the sky layer to let the flag pole stand out.