You don't need no stinkin' sofa! Put some nice fluffy cushions directly on the floor. Take that futon cushion off the frame and fold it against a wall. Add pillows and blankets. The options are endless!
Check out the DHP Emily Convertible Linen Futon Industry Standard Design
That's a nice futon
Possible tiny house bed solution
Sleeper couch/futon w/ storage
Reema Floor Cushion – Urban Outfitters – Home Decor Ideas
http://www.idecz.com/category/Futon/ futon_09 Mais
Floor cushions for playroom Rohini Daybed Cushion - Urban Outfitters: