Another victim of BSO (Bike-Shaped Object) "one-size-fits-none" sizing technology. I agree, it can probably be fixed, but fixing it may cost as much as the bike.
One thought: Since we're talking BSOs here, is the stem mounted to point up? It's reversible, so it may be mounted upside-down.
I am uncomfortable continually bent over riding it. And my seat is already at its lowest point.
The saddle height should be adjusted so that there is a slight bend to your knee at the bottom of the pedal stroke, not to alter the relationship between saddle and handlebar heights.